S.Korea's Kakao Corp signs $173 million deal to acquire 9.05% stake in SM Entertainment (updated)

SM Entertainment Co

07/02/2023 05:37

(Adds more details)
       SEOUL, Feb 7 (Reuters) - South Korea's Kakao Corp
 035720.KS  said on Tuesday it will acquire a 9.05% stake in SM
Entertainment  041510.KQ , an entertainment agency behind K-pop
acts including NCT and Aespa, in a deal worth 217.2 billion won
($172.8 million). 
    The move will see Kakao acquire 112 billion won worth of
shares in SM Entertainment as well as convertible bonds worth
105 billion won, becoming the second-largest shareholder of the
company when the deal is complete. 
    The two will team up to pursue joint management projects
together including global K-pop auditions, Kakao said in an
emailed statement. 
    "We hope to work together in competing in the heavily
contested global music and content market through this
investment," said Kakao Chief Investment Officer Bae Jae-hyun. 
        ($1 = 1,257.2600 won)
 (Reporting by Hyunsu Yim; Editing by Kim Coghill and Tom Hogue)
 ((Hyunsu.Yim@thomsonreuters.com;))