SM Leisure’s company emblem
“The corporate is contemplating varied choices to boost enterprise competitiveness, however has determined to not take part within the deal,” Naver Chief Monetary Officer Kim Nan-sun stated in a regulatory submitting.
The assertion comes after months of widespread hypothesis that crosstown rivals Naver and Kakao had been competing with their founder and largest shareholder Lee Soo-man to amass a 19.21 p.c stake in SM.
On the identical day, SM Leisure additionally denied the rumours, saying, “We’re weighing varied choices, however nothing has been finalized but.”
Following a information report on the alleged bidding conflict final yr, Seoul-listed companies had been required to make clear their stance on the difficulty inside six months.
With Naver exiting the sport, Kakao Leisure and CJ ENM are broadly considered the 2 potential bidders for the stake buy.
Each Kakao and CJ ENM have expressed curiosity in a stake in SM, citing the synergy with their rising music and content material enterprise using on the worldwide Korean cultural content material increase.
There may be hypothesis that Cacao is in search of to amass a stake for 1 trillion received ($804 million), however talks have stalled because of variations over Lee’s function and fee after his stake sale.
By Byun Hye-jin (firstname.lastname@example.org)