HYBE Sells Over 750,000 Shares of SM Entertainment in Block Deal

Summary of new: Hybe’s $50 Million Sale Impacts K-pop Industry

  • Hybe sells 755,000 shares of SM Entertainment at a 5.5% discount.
  • Transaction valued at about $50 million, reducing Hybe’s stake significantly.
  • Stock prices of both companies dropped post-sale announcement.

Hybe, the agency overseeing K-pop sensation BTS, disclosed the sale of 755,000 shares at a 5.5% discount, amounting to 68 billion won or $50 million.

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This move reduced Hybe’s stake from 12.45% to 9.37%. Shares of both Kospi-listed Hybe and Kosdaq-listed SM Entertainment declined post the $50 million stake sale announcement.

Chosun Ilbo highlighted that Hybe chose to sell the minority stake to realize profits due to its lack of influence on SM’s management rights.

Source: CNBC