Shares of Studio Dragon Corp., the drama-making wing of South Korea’s entertainment giant CJ ENM, underperformed the broad market Tuesday morning on news that its parent disposed 2,250,000 shares in the subsidiary to secure fund to facilitate the growth of future growth engines.

At 9:40 am, shares of Studio Dragon declined 6.41 percent to trade at 75,900 won ($62.16), whereas CJ ENM gained 1.04 percent to trade at 106,400 won and the Kospi traded up more than 1 percent.

CJ ENM said in a regulatory filing on Tuesday that it sold 2,250,000 Studio Dragon shares for 166.05 billion won, or 73,800 won apiece, in a block trade before the market opened in the morning Tuesday.

After the sale, CJ ENM’s stake in Studio Dragon fell from 66.18 percent to 58.18 percent.

CJ ENM said it has sold the shares to secure investment resources to pursue future growth and strengthen business competitiveness.

By Pulse

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]