The sale will involve HYBE’s entire 3,757,237 shares in SM Entertainment, with an estimated value of 2.8865 trillion KRW (approximately $2.4 billion USD).
Kakao has proposed a public offer price of 150,000 KRW per share.
SM Entertainment, a major South Korean entertainment company, is home to many top K-pop artists such as EXO, Super Junior, and Red Velvet. HYBE, on the other hand, is the company behind global sensation BTS.
The sale of HYBE’s stake in SM Entertainment is subject to approval from relevant regulatory authorities. If approved, the transaction is expected to be completed in the first half of this year.
Moreover, HYBE’s decision to sell its stake in SM Entertainment to Kakao is a strategic move that highlights the changing landscape of the K-pop industry.
Source: Yonhap News.
