- Hybe Co. agreed to acquire the 14.8 percent stake held by SM Entertainment founder Lee Soo-man by March and pledged to buy an additional 25 percent in a separate notice, according to a document filed early Friday morning before the Seoul market opened. .
- This will make Hybe SM Entertainment’s largest shareholder.
South Korean girl group Aespa at the 2022 KBS Song Festival at Jamsil Arena in Seoul, South Korea, 16 December 2022.
Chosun Ilbo | Imazin | Getty Images
The K-pop agency behind BTS will become the largest shareholder in SM Entertainment — the legacy company known for kickstarting the popularity of Korean pop culture.
Hybe Co. agrees to acquire 14.8% stake held by SM Entertainment founder Li Xiuman to March, according to record Early Friday morning before the Seoul markets opened — and Commitment Purchase of an additional 25% in separate notice.
This will make Hybe SM Entertainment’s largest shareholder. Lee is currently SM Entertainment’s largest investor with an 18.45 percent stake, according to Refinitiv data, its latest filings show, followed by South Korea’s National Pension Service, KB Asset Management and Norway’s Norges Bank Investment Management.
Hybe said in the filing that the deal aims to “enhance its competitiveness in the K-pop industry and generate synergies.”
Shares of SM Entertainment soared Friday, rising more than 16 percent at the open in Seoul. Hybe rose 6 percent, JYP Entertainment rose 2.5 percent and YG Entertainment rose 3.8 percent.
Girl group NewJeans attends the 2022 Fact Music Awards in Seoul, South Korea, on October 8.
Jung Sung Joon | Getty Images Entertainment | Getty Images
The agency is also known for rising girl group NewJeans – which Billboard Hot 100 The hit song “Ditto” came out last month, within six months of its debut.
SM Entertainment is also the agency behind top bands Super Junior, Girls’ Generation and Red Velvet, which performed in front of North Korean leader Kim Jong Un in 2018, at the latest height of inter-Korean diplomacy, performing alongside then-President Moon Jae-in -exist.
Hybe bought 3.5 million shares of SM Entertainment for 422.8 billion won ($334.2 million), or 120,000 won a share, a premium of more than 20 percent to SM Entertainment’s closing price of 98,500 won on Thursday.
Earlier, South Korean Internet company Kakao announced plans to acquire a 9% stake in SM Entertainment for 217 billion won. Kakao shares, which soared shortly after Tuesday’s announcement earlier this week, were last trading down more than 4 percent on Friday.