Top K-pop stocks fall after reports that Hybe may sell SM stake

Shares of two of South Korea’s largest Ok-pop firms fell on Tuesday as trade large Hybe introduced a $50 million sale of its stake in SM Leisure.

Kospi-listed Hybe’s inventory slid as a lot as 2.4%, whereas SM Leisure — which is listed on the Kosdaq —noticed its shares plunge as a lot as 5.74%.

In a regulatory submitting, Hybe — the company that manages Ok-pop sensation BTS — mentioned that about 755,000 shares have been bought for 90,531 South Korean received per share in a block deal, a 5.5% low cost from SM’s final closing worth of 95,800 received.

This implies the overall transaction worth would come as much as about 68 billion received, or about $50 million, and would cut back Hybe’s stake from 12.45% to 9.37%.

South Korean media outlet Chosun Ilbo earlier reported that the sale was as a result of Hybe determined its stake “was a minority stake that had no affect on SM’s administration rights, it will be higher to promote it in giant portions and understand earnings.”

CNBC reached out to SM Leisure for remark, however didn’t instantly obtain a reply.

In February final yr, Hybe misplaced a takeover bid of SM to South Korean social media large Kakao, which presently holds about 40% of the corporate.

The transfer additionally comes amid a separate long-running battle between Hybe and its sublabel ADOR, which manages woman group NewJeans.

Hybe shares have plunged 13.66% since April 19, the final buying and selling day earlier than Hybe launched an audit into ADOR.

Hybe is predicted to switch ADOR CEO Min Hee Jin in a unprecedented normal assembly on Could 31 after she was accused of eager to take the sublabel impartial. A Hybe assertion despatched to CNBC on April 25 mentioned the corporate additionally known as for Min to step down.

Min has denied these allegations and accused Hybe of copying the idea of ADOR’s woman group, NewJeans, for an additional woman group beneath a unique Hybe subsidiary.