Former ADOR CEO Min Hee-jin demanded to be able to exercise his put option on ADOR shares. She even asked for her shares to be bought by HYBE as ADOR's parent company. In November 2024, Min Hee-jin informed HYBE that she would exercise a put option, an investor's right, to sell their shares to the company upon request for its 18 percent stake in ADOR.
The shareholder contract between Min Hee-jin and HYBE states that Min can sell her shares at three-quarters of ADOR's total average operating profit over the past two years multiplied by 13. ADOR reported an operating deficit of 4 billion won in 2022 and an operating profit of 35.5 billion won in 2023.
The figures suggest Min Hee-jin would earn a total of 26 billion won if the put option is exercised. However, HYBE is trying to terminate the contract with Min Hee-jin, so it is still waiting for the court's decision. If the court sides with HYBE, the company will be free to decide whether or not to buy the former CEO's shares.
On the other hand, HYBE recently received an ultimatum from NewJeans to bring back Min Hee-jin as ADOR CEO before November 27, 2024, or all members will take legal action to terminate their contracts with the agency. The agency, led by CEO Kim Ju-young, confirmed that it is reviewing the warning letter. ADOR also promised to resolve the issue wisely and continue to work with NewJeans.
"We received the notification letter this morning and are reviewing it. We are aware of the specific requests they made in it," ADOR said, as reported by My Daily on Thursday November 14, 2024. The letter is the latest conflict between NewJeans and ADOR after ADOR's Board of Directors rejected Min Hee-jin's request to return as the agency's CEO in late October 2024.
As reported by the Korea Times, Min Hee-jin attended via video call and was the only ADOR director who supported his reappointment as CEO. The other ADOR board members rejected the request, so the meeting decided that Min Hee-jin could not return to her old position. Min Hee-jin will remain ADOR's director for the next three years, according to the contract stipulated on October 17, 2024.
Post a Comment