Netmarble to divest 2.66% stake in HYBE to secure liquidity

Game publisher Netmarble will divest a 2.66 percent stake in HYBE for $160 million as it seeks to shore up its liquidity.

HYBE's headquarters in Yongsan District, central Seoul. [YONHAP]

Game publisher Netmarble will divest a 2.66 percent stake in K-pop powerhouse HYBE for 219.8 billion won ($160.3 million), according to the company’s electronic disclosure Thursday.

The company cited “securing liquidity through the sale of held shares” as the reason for the offloading.

Netmarble formed a price return swap (PRS) contract with HYBE based on the closing price of shares on Thursday, at 199,900 won. The transaction will be made before the opening of the stock market on Friday.

PRS refers to an agreement made between two parties where one agrees to pay the other any increase or decrease in the price of a stock over a specified period.

Netmarble previously unloaded a 6 percent stake in HYBE in a block deal last November.

With the latest sell-off, the game publisher's shares in HYBE will dwindle to 9.44 percent.

“The company plans to improve its fiscal stability by reducing acquisition financing through partial divestment of its current stake in HYBE,” a Netmarble spokesperson said. “We are not considering additionally unloading its remaining shares.”

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]