SEOUL, May 28 -- K-pop agency HYBE will sell its entire 9.38 per cent stake in SM Entertainment to China's Tencent for 200 billion won (RM618 million).

In a regulatory filing yesterday, HYBE said it will offload 2,212,237 shares at 110,000 won each.

That price is lower than SM Entertainment's closing share price of 129,900 won on the Korea Exchange the same day, Korea JoongAng Daily reported.

"We divested noncore assets as part of a choice and concentration strategy," HYBE said in the filing.

"Secured funds will be used to secure future growth engines," it added.

The block trade is scheduled for completion after the market closes on Friday.

HYBE acquired the stake in 2023 during a high-profile battle to gain management control of SM...