K -pop representative company Hybe is selling all of its SM Entertainment(SM)stocks to China’s Tencent Music.The sale price is 110,000 won per share, and the disposal amount is in the 243.3 billion won range.

On the 27th, immediately after the market closed, HYBE made official the sale of SM shares through a public notice titled “Decision on Disposal of Other Corporations ‘Stocks and Investment Securities.” According to the public notice, the purchaser is China’s Tencent Music Entertainment, which will purchase all 2,212,237 shares that HYBE held.The purchase price is 110,000 won per share, which is equivalent to 243,346,070,000 won.

The method of sale has also been decided.Hive will transfer its shares to Tencent Music Entertainment Hong Kong through an after-hours block deal, or so-called ‘block deal’, after the market closes on the 30th.

Regarding this sale decision, Hive explained it as a “part of the reorganization of non-core assets” for the purpose of selecting and focusing on corporate operations.Hive also stated that “the secured funds will be used to secure future growth engines.”

This sale also brought about a major change in the composition of SM’s major shareholders.The shares held by Hive accounted for 9.66% of the total, effectively making them the ‘second largest shareholder’ excluding Kakao-related shares.After the block deal is completed on the 30th, SM’s second largest shareholder will change to China’s Tencent Music.


Reporter Heo Min- mignon@donga.com

This article is automatically translated using Google AI. If you notice any inaccuracies, please let us know at allkstar@donga.com.