SEOUL (Reuters) -China's Tencent is expected to become the second-largest shareholder of major K-Pop agency SM Entertainment, according to a South Korean filing on Tuesday. South Korea's Hybe said in a regulatory filing that it plans to sell its 2.2 million shares in SM Entertainment to Tencent Music Entertainment for 243 billion won ($177 million) on May 30. The 9.7% stake would make Tencent the second-largest shareholder in SM Entertainment, after the 42% controlling stake held by Kakao Corp and affiliate Kakao Entertainment, according to an SM filing. Tencent Music did not immediately reply to a request for comment. There have been signs of a potential thaw in the unofficial ban on K-Pop concerts and performances in China, in place since 2016 after Beijing protested against the deployment of a U.S. anti-missile defence system in South Korea. Restarting K-Pop concerts in China would sharply increase major agencies' ticket revenue, analysts said. Hybe, a leading K-Pop agency behind supergroup BTS, acquired the SM Entertainment stake in a failed takeover attempt in 2023. Hybe said in its filing that it was selling the stake for "efficient management of investment assets". (Reporting by Joyce LeeEditing by Mark Potter)
