AsianFin -- Tencent is poised to become the second-largest shareholder in South Korea’s SM Entertainment, a major K-pop agency behind global acts such as EXO and NCT, according to a regulatory filing on Tuesday.
South Korean entertainment conglomerate Hybe announced it will sell 2.2 million shares in SM Entertainment to Tencent Music Entertainment for 243 billion won ($177 million), with the transaction set to close on May 30.
The deal will give Tencent a 9.7% stake in SM, trailing only Kakao Corp and its affiliate Kakao Entertainment, which jointly hold a 42% controlling interest, according to SM's filings.
Tencent Music has not commented publicly on the acquisition.
The move comes amid signs of easing tensions between China and South Korea, potentially signaling a lift of Beijing’s informal ban on K-pop concerts and performances imposed in 2016, after Seoul deployed a U.S. anti-missile defense system.
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