HYBE will sell all of its shares in SME to Tencent Music. HYBE is the third-largest shareholder, holding 2,212,237 shares (9.38% equity).
According to the Financial Supervisory Service's electronic disclosure system on the 27th, HYBE plans to sell 2,212,237 shares of SME to Tencent Music Entertainment Hong Kong Limited through an after-hours block trade on the 30th.
The disposal price is 110,000 won per share, about 15.3% lower than the closing price of 129,900 won today. Selling all the shares will bring approximately 243.3 billion won to HYBE, which corresponds to 6.93% of its equity of 3.5 trillion won.
This is the first time HYBE has sold its entire stake in SME since participating in the management rights takeover battle in February 2023, about two years ago. During that time, when HYBE was acquiring equity in SME, Kakao also jumped in to secure equity, causing the stock price to surge, leading to allegations of 'stock price manipulation.' Kakao is currently the largest shareholder, holding 41% of SME's equity.
HYBE stated that it is disposing of its shares in SME to enhance the efficiency of its investment asset management. As of December last year, HYBE has investments in 36 companies.