South Korea court accepts injunction against Kakao purchase of SM shares

A SOUTH Korean court accepted on Friday (Mar 3) an injunction filed by SM Entertainment founder Lee Soo-man against the acquisition of SM shares by Kakao, blocking its bid to own a 9.05 per cent stake in the K-pop agency, Lee’s lawyer said.

The court’s decision could help pave the way for HYBE, the agency of K-Pop supergroup BTS, to take over SM, which has for years been one of the big three K-pop powerhouses.

HYBE has already secured a 15.8 per cent stake in SM and is seeking to acquire more shares through a tender offer bid.

SM’s current management have called the takeover attempt hostile and has sought to team up with Kakao to pursue various businesses.

SM and Kakao did not immediately reply to requests from Reuters for comment. REUTERS