South Korean media outlet Chosun Ilbo reported that Hybe — which manages K-pop sensation BTS — intends to make the transaction a block deal of 750,000 shares.
Kospi-listed Hybe's stock slid as much as 2.4%, while SM Entertainment — which is listed on the Kosdaq —saw its shares plunge as much as 5.74%.The news outlet also said the sale was because Hybe decided its stake "was a minority stake that had no influence on SM's management rights, it would be better to sell it in large quantities and realize profits."
This means the total transaction value would come up to about 68 billion won, or about $50 million. Before the transaction, Hybe held a 12.45% stake in SM.In February last year, Hybe lost a takeover bid of SM to South Korean social media giant Kakao, which currently holds about 40% of the company.