SM Culture & Contents Co., Ltd. (KOSDAQ:A048550) agreed to acquire remaining 19.64% stake in Hotel Tris Co., Ltd. for approximately KRW 890 million on March 27, 2020. A merger contract is expected to be signed on March 30, 2020. The merger ratio is 1: 26.6809865. SM Culture & Contents Co., Ltd. will issue 26.7 shares for each share of Hotel Tris Co., Ltd. SM Culture & Contents Co., Ltd. will issue 0.55 million shares as consideration. After the transaction, SM Culture & Contents Co., Ltd. will be the surviving entity and Hotel Tris Co., Ltd. will be dissolved. The name of the surviving entity will be SM Culture & Contents Co., Ltd. Hotel Tris Co., Ltd. reported total assets of KRW 1.4 billion and net assets of KRW 759.2 million as at December 31, 2019. Hotel Tris Co., Ltd. reported sales of KRW 1.2 billion, operating profit of KRW 761.4 million and net income of KRW 683.5 million in 2019. The Board of Directors of SM Culture & Contents Co., Ltd. passed a resolution for the transaction on March 27, 2020. The transaction is expected to be completed on June 1, 2020. The transaction will maximize the synergy effect.