S.M. Entertainment Co., Ltd. (KOSDAQ:A041510) entered into a contract to acquire 8.75% stake in FNC ADD CULTURE. Co., Ltd. (KOSDAQ:A063440) from FNC Entertainment Co., Ltd. (KOSDAQ:A173940) for KRW 10.2 billion on March 14, 2018. Under the terms of the transaction, S.M. Entertainment Co., Ltd. will acquire 3.45 million shares at KRW 2,972 per share.

In related deals, S.M. Entertainment Co., Ltd. will acquire additional 4.15 million shares from Seong-Ho Han and Seong-Hoon Han and will acquire 5.88 million new shares through third party allocation. Upon completion of the acquisition of new shares and existing shares, S.M. Entertainment Co., Ltd. will hold 30.51% stake in FNC ADD CULTURE. Co., Ltd. The transaction is expected to close on May 18, 2018.