K-pop monopoly? BTS agency's plan to buy big slice of rival stokes concern, says activist fund

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K-pop monopoly? BTS agency's plan to buy big slice of rival stokes concern, says activist fund
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SEOUL : As the company behind K-pop royalty BTS seeks to build a big stake in a prominent rival for close to $900 million, a vocal activist fund is playing a leading role in the target's all-out efforts to stay independent.The fund, Align Partners, is fronting a media campaign against plans by HYBE, home

SEOUL : As the company behind K-pop royalty BTS seeks to build a big stake in a prominent rival for close to $900 million, a vocal activist fund is playing a leading role in the target's all-out efforts to stay independent.

"HYBE and SM together accounted for 52 per cent of record sales last year according to data from the Circle Chart," Align Partners CEO Lee Chang-hwan said in an interview, referring to South Korea's sales tracking agency. HYBE hasn't disclosed whether it intends to buy more of SM after the current tender offer. Taken together, the 40 per cent stake would cost HYBE about 1.137 trillion won under current plans - though SM shares traded above HYBE's tender offer price on Thursday.

Align's Lee said this would become a proxy fight, with SM's current executives wooing shareholders with plans to improve SM's sales and profitability.

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