Ok-pop sources as company behind BTS to grow to be main shareholder in rival

South Korean lady group aespa at KBS Track Pageant 2022 at Jamsil Area on December 16, 2022 in Seoul, South Korea.

The Chosunilbo Jns | imaginings | Getty Pictures

The Ok-pop company behind BTS is ready to grow to be the key shareholder of SM Leisure, the previous firm identified for kicking off the wave of recognition round Korean popular culture.

Hybe Co. has agreed to amass a 14.8% stake held by the founding father of SM Leisure Lee Sooman in March, in accordance with a deposit early Friday morning earlier than the Seoul market opens – and promised in a separate discover to buy one other 25% curiosity.

This could make Hybe one in every of SM Leisure’s main shareholders. Lee is at present the highest investor in SM Leisure with an 18.45% stake, in accordance with Refinitiv knowledge, adopted by South Korea’s Nationwide Pension Service, KB Asset Administration and Norway’s Norges Financial institution Funding Administration, in accordance with his newest. paperwork filed.

The deal goals to “improve its competitiveness within the Ok-pop business and obtain synergy impact,” Hybe stated in its submitting.

Shares of SM Leisure soared on Friday, rising greater than 16% on the Seoul open. Hybe rose 6% and JYP Leisure rose 2.5%, whereas YG Leisure gained 3.8%.

Woman group NewJeans attends The Truth Music Awards 2022 on October 8 in Seoul, South Korea.

Chung Sung-jun | Getty Pictures Leisure | Getty Pictures

The company can also be identified for rising lady group NewJeans – which debuted within the Billboard’s Sizzling 100 together with his hit “Ditto” final month inside six months of his debut.

SM Leisure can also be the company behind prime bands Tremendous Junior, Women’ Technology and Crimson Velvet, a band that carried out for North Korean chief Kim Jong Un in 2018 at the newest top of inter-Korean diplomacy. , alongside President Moon Jae. -In.

Hybe purchased 3.5 million shares of SM Leisure for 422.8 billion gained ($334.2 million) – or 120,000 gained per share, at a premium of over 20% to the closing value from SM Leisure of 98,500 gained as of Thursday’s market shut.

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It comes after South Korean web firm Kakao introduced plans to amass a 9% stake in SM Leisure in a deal price 217 billion gained. Kakao shares jumped shortly after Tuesday’s announcement earlier within the week and final traded greater than 4% decrease on Friday.