SM Culture & Contents Co., Ltd. (KOSE:A048550) agreed to acquire Hoon Media Co., Ltd. for KRW 1.7 billion in stock on March 14, 2013. A statutory merger agreement was signed on March 18, 2013. SM Culture & Contents Co., Ltd. will issue 0.5 million shares representing 5.2433197 share for every share of Hoon Media Co., Ltd. For the period ending December 31, 2012, Hoon Media Co., Ltd. reported total assets of KRW 1.81 billion, total liabilities of KRW 1.4 billion, total stockholders' equity of KRW 414 million, sales of KRW 5.78 billion and net profit of KRW 113 million.

The transaction is subject to approvals from related regulatory authorities. Board of Directors of SM Culture & Contents Co resolved the transaction on April 16, 2013 and shareholders of Hoon Media resolved the transaction on April 16, 2013. The transaction is expected to close by May 21, 2013 and scheduled listing date is May 31, 2013.