South Korean music big HYBE, house to Okay-pop superstars BTS, is about to unload its whole stake in SM Entertainment.
Today (March 24), HYBE introduced that it will settle for a young supply by South Korean web big Kakao and promote its 15.8 per cent stake in Okay-pop company SM Entertainment, as reported by Reuters.
HYBE’s share of SM Entertainment is value about ₩564billion (roughly US$437million), based mostly on Kakao’s March 7 tender supply to purchase as much as 35 per cent of SM Entertainment for ₩150,000 per share.
According to Reuters, the deliberate sale of SM Entertainment shares by HYBE would internet the Okay-pop big a revenue of round US$87 million, which is roughly 25 per cent greater than the worth the corporate initially paid for the shares.
Following the announcement, shares of each Kakao and SM Entertainment firms went up about half a per cent, as of 1:30pm KST. Meanwhile, in the identical time, shares of HYBE went down about half a per cent.
Earlier this month, HYBE introduced it will drop its bid to accumulate SM Entertainment after hanging a deal to “cooperate” with Kakao on “matters related to their platforms”.
That assertion got here after SM Entertainment launched a press release in assist of Kakao’s tender supply, saying that the deal would “ensure autonomous and independent management of the company”.
HYBE’s deliberate acquisition of SM Entertainment had been met with push again by SM management and employees, with SM CFO Jang Cheol-hyuk describing the scenario as a “hostile takeover”.
Meanwhile, HYBE founder Bang Si-hyuk lately revealed that the corporate had tried to accumulate SM Entertainment two different occasions previous to 2023.