Hybe, the talent agency managing the popular Korean pop (K-pop) boyband BTS, intended to sell 750,000 of its shares in SM Entertainment for $50 million.
Local media outlet Chosun Ilbo reported that the agency decided to sell its stake because it deemed it as a "minority stake that had no influence on SM's management rights."
Hybe's SM shares would be sold at a 4% to 5.5% discount to SM's last closing price of SKW 95,800 ($70.61), which would puts the sale price per share between SKW 91,968 to SKW 90,531 ($67.78 to $66.73). Prior to the transaction, Hybe held a 12.45% stake in SM.
CNBC also reported that, in the aftermath of the announcement, Hybe's stock market shares slid by as much as 2.4% on Kospi, while SM's plummeted to as much as 5.74% on the Kosdaq.
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Hybe's SM Takeover Attempt, Beef with ADOR's Min Hee-Jin
Hybe's decision to sell its SM stake was influenced by its failed bid to take over SM against South Korean social media platform Kakao, which currently held about 40% of the company.
The move also came amid an ongoing legal battle between Hybe and its sub-label ADOR, which manages the girl group NewJeans.
VCPost earlier reported that Hybe filed a police report against ADOR CEO Min Hee-Jin after Hybe initiated an audit into ADOR's operations and Min refused to resign her post.
The agency is expected to replace Min in an emergency meeting Friday (May 31) after she was accused of splintering off of Hybe to become its own independent label, accusations Min has categorically denied.
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