Overview

• The sale involves 2.21 million SM Entertainment shares at 110,000 KRW apiece in an after-hours block trade set to close on May 30.
• Tencent Music will become SM’s second-largest shareholder behind Kakao’s combined 41.5% stake.
• Hybe said the divestment is part of its strategy to shed non-core assets and fund future growth engines.
• SM Entertainment has announced plans to expand cooperation with Tencent Music into co-producing new idol groups and joint IP ventures.
• SM’s stock has jumped about 20% in the past month on hopes China may ease its ban on Korean entertainment content.