It has been revealed that YG Entertainment , one of what is considered the “Big 3” entertainment companies in Korea, are now in the process of negotiating a large equity fund investment with LVMH Moët Hennessy and Louis Vuitton S.A.
Negotiations have been under way since June with the individuals involved still not having reached a settlement at this time.
During this time YG Entertainment share prices have skyrocketed to about 15% going from 40,550 won ($39) a share to 46,600 won ($45) a share. With the launch of the entertainment companies stocks and the decision to even give each of their artist some, thereby alocating them a small piece of the company, YG has moved into the realm of a publically traded company.
In regards to this situation the Korea Herald asked just what the company was planning to do since it went public and asked for the company to give a public announcement, YG responded saying, “We received offers for investment and business collaboration from a third party, so we are in the midst of reviewing the attraction of investment including capital increase by issuing new stocks and allotment to the third party.We have not yet decided on anything. We will release full disclosure once we’ve reached a concrete conclusion within a month.”
In terms of the affiliated private equity fund, L Capital Asia, Louis Vuitton are seeking to invest in the company 100 billion won ( $100 million USD) but would only be 14% of YG Entertainment’s marketed capitalization and worth of 700 billion won ($700 million USD).
Source: ohkpop
Edited by: Angelspatience
- Excited
- Fascinated
- Amused
- Bored
- Sad
- Angry
Facebook
Twitter
YouTube
RSS