HYBE to Sell Entire Stake in SM Entertainment to Tencent Music

HYBE is selling its entire stake in SM Entertainment to Tencent Music Entertainment (TME). According to the Electronic Disclosure System of the Financial Supervisory Service on May 27th, HYBE will sell its entire stake in SM Entertainment, approximately 243 billion Korean won, to Tencent Music on May 30th.

HYBE currently holds approximately 2.21 million shares of SM, which will be disposed of through a block trade after the market closes on May 30th, following a resolution by the HYBE board of directors. The price per share is 110,000 Korean won.

As a result, Tencent Music will become the third-largest shareholder in SM Entertainment, following Kakao and Kakao Entertainment. HYBE will conclude its investment in SM Entertainment following the completion of the stock trade agreement in 2023. HYBE invested a total of approximately 550 billion Korean won in acquiring the stake in SM Entertainment, and the cumulative recovery amount is slightly higher than that.

Written by Yoon Sang Geun

Translated by Lee So Yun

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