South Korean music label Hybe, which manages K-pop boy band BTS, has said it aims to sell its entire stake in entertainment company SM Entertainment, by accepting a tender offer from South Korean internet giant Kakao.
According to a report from Reuters, Hybe will sell its 15.8% stake in SM Entertainment for 564 billion won (£358m/€407m/$437m).
In February, Hybe attempted to purchase a larger share in SM Entertainment after buying an initial 14.8% share, but this fell through earlier this month. Kakao then launched a tender offer to acquire up to 35% of SM Entertainment at 150,000 won per share.
Hybe would pocket around $87m from the sale to Kakao, which represents a 25% return from an investment that was made just over a month ago. The company purchased the stake from SM founder Lee Soo-man.
Variety reported that it would be unlikely that all the shares being sold will go to Kakao, as it would take the company beyond the 35% sought in its offer. Excess shares would most likely have to be sold through the stock market.