[ad_1]
HYBE has officially confirmed the sale of its entire stake in SM Entertainment to Tencent, a Chinese company.
On May 27, HYBE made the announcement via a public disclosure. The filing indicates that Tencent Music Entertainment will purchase all 2,212,237 shares currently held by HYBE. The shares are being sold for 110,000 won (around $80) each, resulting in a total transaction value of 243.35 billion won (approximately $177 million).
The transaction will take place as a block trade following the market’s closure on May 30, with shares being transferred to Tencent Music’s subsidiary in Hong Kong. Once finalized, Tencent Music will become the second-largest shareholder of SM Entertainment after Kakao, taking over HYBE’s previous position with a 9.66 percent stake.
HYBE entered the SM acquisition process in early 2023, acquiring a 14.8 percent stake from SM’s founder and former executive producer Lee Soo Man. However, after losing to Kakao in the takeover competition, HYBE sold about half of its shares to Kakao via a tender offer.
In May 2023, HYBE further decreased its stake through another block deal, and with this latest sale, it has completely divested from SM.
Commenting on the transaction, HYBE stated, “This decision is part of our strategy to streamline non-core assets. The funds raised will be used to support future growth initiatives.”
[ad_2]
Source link