Former ADOR CEO Min Hee Jin has informed HYBE of her intent to exercise a put option on her ADOR shares.
According to sources in the music industry on November 14, Min Hee Jin notified HYBE of this decision in early November. This put option is a key element in the shareholder agreement Min signed with HYBE, allowing her, upon exercise, to receive a payout from HYBE at 75% of the average operating profit of ADOR for the past two years.
The valuation metric Min Hee Jin has notified HYBE of uses ADOR’s operating results from 2022–2023. In those years, ADOR, which Min Hee Jin led, recorded an operating loss of 4 billion KRW (-2.9 million USD) in 2022 and an operating profit of 33.5 billion KRW (23.8 million USD) in 2023. The 2022 loss likely reflects the debut timing of NewJeans in July of that year.
According to ADOR's audit report published last April, Min Hee Jin owns 573,160 shares, equivalent to 18% of ADOR. Based on these figures, Min Hee Jin stands to receive approximately 26 billion KRW (~18.5 million USD).
Besides Min Hee Jin, former ADOR Deputy CEO Shin and former director Kim have also reportedly notified HYBE of their intent to exercise their put options.
Min Hee Jin's exercise of the put option is likely to lead to legal conflict. In July, HYBE notified Min Hee Jin of its intent to terminate the shareholder agreement, but she did not acknowledge the termination.
Meanwhile, on November 13, NewJeans sent a letter to ADOR, now under new leadership, demanding corrective action and warning that failure to comply would lead to the termination of their exclusive contract.
Since April, Min Hee Jin and HYBE have been in an intense legal dispute. At that time, HYBE launched an audit of ADOR's management under Min Hee Jin, citing an alleged breach of duty and an attempt to seize control. Min countered, arguing that the plagiarism on group concepts within HYBE's label groups, including NewJeans, was at the core of the conflict.
Ultimately, HYBE removed Min Hee Jin from her CEO role on August 27, appointing her as an inside director. Then, on October 30, ADOR's board voted against the proposal for Min Hee Jin's reinstatement as CEO, which her supporters had raised.
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