SK Square will sell its subsidiary Dreamus Company, which operates the music streaming service "FLO," to BeMyFriends.
According to the investment banking (IB) industry on the 10th, SK Square on the day selected BeMyFriends as the preferred bidder to acquire Dreamus Company and notified the result.
Earlier, at the end of Aug., BeMyFriends participated in the main bid for the acquisition of Dreamus Company along with the Daemyung GEC·JC Partners consortium and Busan Equity Partners (EP).
BeMyFriends drew attention for showing a strong willingness to acquire over a long period compared with the other three candidates. It is a company where Lee Ki-young, formerly of Dreamus Company, serves as co-CEO.
As for Dreamus Company equity, SK Square holds 38.67%, and the second-largest shareholder Shinhan Venture Investment holds 23.49%. Shinhan Venture Investment has tag-along rights, giving it the authority to ask to sell its stake together when SK Square sells its stake. In addition, there is said to be a special clause requiring Shinhan Venture Investment's holdings to be sold before SK Square's holdings.
If BeMyFriends acquires all the equity held by SK Square and Shinhan Venture Investment this time, BeMyFriends' equity stake in Dreamus Company is expected to total 62.16%. Based on the current market price, the acquisition price is just under 80 billion won, but it is expected to well exceed 100 billion won when a management control premium is applied.