SM Entertainment Japan to Sell DearU Shares to Parent Company for Market Price

TOKYO, Jun 25 (Pulse News Wire) – SM Entertainment Japan CO.,LTD. (4772.T) announced that its subsidiary, Everything Japan Corporation (ESJ), plans to sell its shares in DearU Co., Ltd.

To its parent company, SM Entertainment Co., Ltd., based on the closing price on July 27, 2026. The transaction aims to optimize asset management within the group and maximize recovery value amid declining market prices. ESJ currently holds DearU shares with a holding ratio of 1.52%. The sale is part of ESJ's preparation for future dissolution due to halted operations. The shares were originally acquired in April 2020 for development purposes but now lack ongoing significance. By selling the shares at their fair market value, the company seeks to avoid further price volatility risks and ensure funds flow back to support domestic artist management activities.

The transaction details include transferring 360,000 ordinary shares of DearU Co., Ltd. to SM Entertainment Co., Ltd. via cash settlement on July 27, 2026. Independent outside directors confirmed the fairness of the deal, ensuring minority shareholders' interests are protected. The estimated special gain from this sale is approximately 747 million based on recent market conditions and exchange rates. Specific figures will be disclosed once the final market price is determined on July 27, 2026.