Hybe is selling its entire stock of SM Entertainment, valued at approximately 200 billion KRW, to China’s Tencent.
On the 27th, Hybe announced that it would sell all 2,212,237 shares (9.38%) of its SM Entertainment stock to Tencent.
The price is set at 110,000 KRW per share, totaling about 243.3 billion KRW.
The transaction will be conducted as an after-hours block deal on the 30th.
Previously, in 2023, Hybe attempted to secure management control of SM by purchasing a 14.8% stake from then-major shareholder and general producer Lee Soo-man, at 120,000 KRW per share.
However, Kakao entered the acquisition race later on and acquired shares at a higher price than Hybe’s public offer, leading Hybe to abandon its pursuit of SM’s management control and acquisition.
Subsequently, Kakao became the largest shareholder of SM.
Hybe stated that it was streamlining non-core assets to focus on key business opportunities and that the funds obtained would be used to secure future growth drivers.