이 기사는 2021년 04월 07일 08시00분 thebell에 표출된 기사입니다

HYBE, which is home to K-pop superstar BTS, has agreed to buy Ithaca Holdings, the U.S. media group managing Justin Bieber and Ariana Grande, for $950 million in a surprise deal that was advised by JPMorgan and Paul Hastings LLP.

JPMorgan has acted as financial advisor and Paul Hastings has acted as legal counsel to HYBE – formerly known as Bit Hit Entertainment – on the cross-border transaction, announced last week.

Both firms have connections to the South Korean company. The U.S. bank led the entertainment company’s listing in October last year alongside two local brokerage firms, helping to raise funds from foreign investors. HYBE mandated JPMorgan for the recent deal again probably because it wanted to seal the acquisition quickly and quietly, industry watchers said.

Iksoo Kim of Paul Hastings, who advised HYBE on the transaction, also worked on its initial public offering before he moved from Greenberg Traurig LLP to Paul Hastings in February.

Kim previously advised on notable deals in South Korea, including the IPO of SK Biopharmaceuticals, Hanwha Systems’ takeover of the U.K. satellite venture Phasor Solutions and the acquisition of Momentive Performance Materials by a consortium led by KCC.

Paul Hastings, which opened its Seoul office in 2012, has been active in the country’s mergers and acquisitions advisory market. The law firm acted as legal counsel to Samsung Electronics on the technology giant’s $8 billion acquisition of Harman International Industries in 2016.

HYBE is acquiring 100% of Ithaca, led by music entrepreneur Scooter Braun, through its wholly-owned U.S. subsidiary, Big Hit America Inc. After the deal is completed, Ithaca will be merged with BH Odyssey Merger Sub LLC, Big Hit America’s subsidiary.

Big Hit America will receive a $950 million capital injection from HYBE and also raise $100 million in loans guaranteed by the parent company to pay a total of $1.05 billion in cash to shareholders and bondholders in Ithaca, according to regulatory filings.

At the same time, HYBE last week announced plans to raise 440 billion won ($391.3 million) through a rights issue and 180 billion won in a private placement in order to secure additional funds and reduce its debt. Scooter Braun, who will join the board of HYBE, and dozens of artists including Justin Bieber and Ariana Grande will participate in the private placement offering at a price of 210,608 won per share. (Reporting by Si-eun Park)