Patrick Frater Asia Bureau Chief HYBE, the South Korean talent management company behind BTS, said Wednesday that it has already paid for its purchase a 14.8% stake in rival SM Entertainment and expects to complete the deal by March 6, ahead of the previously announced schedule.
The company announced earlier this month that it will buy most of the 18.5% stake in SM Entertainment owned by founder Lee Soo Man, making HYBE SM Entertainment’s largest shareholder.
The deal is priced at $336 million (KRW423 billion), giving SM Entertainment an implied valuation of $2.27 billion. Lee retains an option to sell the remainder of his stake to HYBE at specific prices within a month.
HYBE has also offered to buy a further 25% of the company from other shareholders. Despite this, HYBE says its share purchases do not amount to a hostile takeover.
Read more on variety.com