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(Photo=Hybe) |
[Alpha Biz= Reporter Kim Sangjin] Hybe is pushing for a block deal (after-hours bulk sale) for the 750,000 shares it holds in SM Entertainment.
According to investment banking (IB) sources on the 27th, Hybe entered the institutional block building (demand forecasting) for its approximately 750,000 shares of SM Entertainment immediately after the market closed. The expected discount rate per share is between -4% and -5.5% (9,1968 to 9,531 won) compared to the closing price of the day (95,800 won). Samsung Securities is the lead underwriter for the sale.
Hybe currently holds 2,967,759 shares (12.45%) of SM Entertainment. Since it's a minority stake that doesn't influence SM Entertainment's management control, Hybe has judged that it would be better to realize profits by selling a large quantity of shares. SM Entertainment's stock price has risen by about 20% over the past month, buoyed by expectations of easing regulatory restrictions in China.
After the completion of institutional demand forecasting, Hybe plans to convene a board meeting either on the same night or before the market opens the next day to pass a resolution on this matter.
Last year, during a dispute over SM Entertainment's management control, Hybe agreed to acquire a 14.8% stake from the company's founder, Lee Soo-man, for 422.8 billion won. Subsequently, some of the shares were sold to Kakao, and in February of this year, Lee exercised put options he secured at the time of the share acquisition contract, acquiring an additional 3.68% stake.
알파경제 Kim SangJin (letyou@alphabiz.co.kr)
