Min Hee Jin Stands To Lose Billions If HYBE Proves Breach Of Trust

Min Hee Jin Stands To Lose Billions If HYBE Proves Breach Of Trust

The ongoing legal feud between HYBE and ADOR over a suspected takeover attempt has drawn attention to the possibility of the former repurchasing ADOR CEO Min Hee Jin’s shares.

Min Hee Jin | The Korea Herald

According to a Korea Economic Daily report on May 1, KST, the ADOR shareholders’ agreement stipulates that HYBE has the right to purchase all the shares of Min and others directly through a designated third party if any party breaches contracts. The purchasing price per share under the call option is specified to be the lower nominal value per share and 70% of the fair value.

| hybe..co.kr

This means that while HYBE would have had to purchase the ADOR CEO’s shares for around ₩100 billion KRW (about $72.7 million USD) under normal circumstances, if they can establish that a breach of trust has occurred, they can buy the shares at the par value level. The purchasing scale at the par value is estimated to be ₩2.80 billion KRW (about $2.03 million USD) for Min’s shares and ₩3.20 billion KRW (about $2.33 million USD), including the management. This further implies that Min Hee Jin, who reportedly borrowed ₩2.00 billion KRW (about $1.45 million USD) to purchase 18% of the ADOR shares, might have to leave the company empty-handed.

Meanwhile, HYBE has stated that it doesn’t intend to fuel discourses that reduce its conflict with ADOR to a dispute over compensation or revenge.

You can read more about the recent developments in the HYBE vs ADOR feud here:

“Distortion Of Truth” — Min Hee Jin Hits Back At HYBE’s Accusations Of Planned Termination Of NewJeans’ Contracts

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