Hybe sells entire SM Entertainment stake in RM618m deal, making China's Tencent second-largest shareholder
In a regulatory filing yesterday, HYBE said it will offload 2,212,237 shares at 110,000 won each.
That price is lower than SM Entertainment's closing share price of 129,900 won on the Korea Exchange the same day, Korea JoongAng Daily reported.
'We divested noncore assets as part of a choice and concentration strategy,' HYBE said in the filing.
'Secured funds will be used to secure future growth engines,' it added.
The block trade is scheduled for completion after the market closes on Friday.
HYBE acquired the stake in 2023 during a high-profile battle to gain management control of SM Entertainment.
It initially bought 14.8 per cent of SM Entertainment from founder Lee Soo-man, before selling 8.62 per cent to Kakao in March 2023 and another 3 per cent later that year.
Tencent will become SM Entertainment's second largest shareholder after the deal, following Kakao and Kakao Entertainment, which hold a combined 41.5 per cent stake.
'We will strengthen our partnership with Tencent Music Entertainment,' SM Entertainment said.
SM Entertainment manages major K-pop acts including NCT, aespa and WayV, a group focused on the China market.
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