2024-04-22 17:50:45
The stock price plummeted as Hive (352820) exercised its right to audit the management of Adore, a subsidiary of the group ‘New Jeans’. As a result, approximately 750 billion won in market capitalization evaporated in one day.
On the 22nd, Hive finished trading at 212,500 won, down 18,000 won (7.81%) from the previous trading day. On this day, Hive plummeted 10.63% during the day. Accordingly, Hive’s market capitalization as of today’s closing price was KRW 8.8511 trillion, a decrease of KRW 749.7 billion from the previous trading day (KRW 9.6008 trillion).
Foreigners and institutions began selling together. Foreigners and institutions sold 11.2 billion won and 27 billion won, respectively, on this day. On the other hand, individuals alone bought 39.6 billion won.
This is because news broke that some Adore executives, including CEO Min Hee-jin, were being audited for their ‘attempt to leave the hive’. In particular, Min, CEO of Adore, the agency of the girl group ‘New Jeans’, appears to have rebelled against Hive Chairman Bang Si-hyuk, which seems to have greatly shaken the investment sentiment.
According to the industry, on this day, Hive began auditing Adore’s management, CEO Min Hee-jin and executive A. It is reported that the Hive audit team visited Adore management and worked to recover computer assets and secure face-to-face statements.
The Hive audit team exercised this audit authority after detecting circumstances in which Adore executives leaked confidential contracts and induced Hive to sell Adore stocks held by Hive. Hive also understands that Mr. A used his position to pass on Hive’s internal information to Adore.
In the industry, it is believed that Hive judged that this action by Adore’s management was an attempt to so-called ‘de-Hive’ and take over management rights over Adore, and took immediate action. Currently, 80% of Adore’s shares are held by Hive, and the remaining 20% is held by Adore’s management, including CEO Min.
In this situation, Hive is said to have requested the Adore board of directors to convene a general shareholders’ meeting on this day. The purpose is to inquire about the circumstances surrounding the attempt to seize management rights, but it remains unclear whether Adore’s board of directors, led by CEO Min Hee-jin, will respond to this request.
Meanwhile, CEO Min joined SM Entertainment through open recruitment in 2002 and served until 2018. After moving to Hive in 2019, he successfully launched the group New Genes at Adore.
Reporter Kim Jeong-hyeon Photo News 1
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2024-04-22 17:50:45