Naver defers acquisition plan for SM Leisure


SM Leisure’s company emblem

South Korean tech large Naver stated on Friday it isn’t partaking in a bidding struggle for SM Leisure, the Okay-pop powerhouse behind EXO and Espa.

“The corporate is contemplating numerous choices to reinforce 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 have been competing with their founder and largest shareholder Lee Soo-man to amass a 19.21 % stake in SM.

On the identical day, SM Leisure additionally denied the rumours, saying, “We’re weighing numerous choices, however nothing has been finalized but.”

Following a information report on the alleged bidding struggle final yr, Seoul-listed companies have been required to make clear their stance on the problem 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 growth.

There may be hypothesis that Cacao is searching for to amass a stake for 1 trillion gained ($804 million), however talks have stalled as a consequence of variations over Lee’s function and fee after his stake sale.

By Byun Hye-jin (hyejin2@heraldcorp.com)



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