BTS manager Hybe to sell US$437 million stake in SM Entertainment
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
SOUTH Korean music label Hybe, manager of boy band BTS, said on Friday (Mar 24) that it aims to sell its entire 15.8 per cent stake in K-pop pioneer SM Entertainment for 564 billion won (S$480 million) by accepting a tender offer from bidder Kakao.
The decision marked a formal end to the takeover battle between Hybe and social media giant Kakao over SM, which began in February after SM’s management became estranged from its founder Lee Soo-man over governance issues.
For weeks, Hybe battled against Kakao to acquire SM, and then dropped its bid earlier this month. But it remained uncertain until Friday whether Hybe, currently SM’s biggest shareholder, would dispose of its stake.
Kakao, which has big expansion plans in the entertainment industry, launched a tender offer for SM this month to acquire up to 35 per cent at 150,000 won per share; Hybe’s 120,000 won offer had failed to win enough investor support.
The planned stake sale would give Hybe a gain of around US$87 million, a 25 per cent quick return from an investment made just a month before, mainly by purchasing a stake from SM founder Lee Soo-man, 70, who is considered the “godfather” of the K-pop industry.
Kakao’s offer was backed by the current SM management team, led by Lee’s nephew.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
Hybe chairman Bang Si-hyuk said last week that he was “personally satisfied” with a new partnership with Kakao on fan platform businesses, despite losing the battle over SM.
He added that Hybe is planning a substantial number of acquisitions and investments this year, as the K-pop giant looks to boost its US presence.
SM shares were up 1.77 per cent as at 0213 GMT, while the smaller Kosdaq Index indicated a 1.13 per cent rise. Hybe shares were up 0.85 per cent, compared with a 0.53 per cent drop in the benchmark Kospi market.
SM is home to popular K-pop groups such as Girls’ Generation, HOT, EXO, Red Velvet, Super Junior, SHINee, NCT Dream and Aespa. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
TRENDING NOW
Air India asks Tata, Singapore Airlines for funds after US$2.4 billion loss
Beijing’s calculated silence on the Iran war
China pips the US if Asean is forced to choose, but analysts warn against reading it like a sports result
Richard Eu on how core values, customers keep Singapore’s TCM chain Eu Yan Sang relevant
