Shortcut to Body Shortcut to main menu

Investment News

YG Entertainment to sell $60 mln shares to LVMH-sponsored capital
Date
2014.08.22

According to Yonhap News,

(SEOUL=Yonhap News) YG Entertainment Corp., South Korea's high-brand entertainment agency who has Psy as its client, said Wednesday it will sell new shares worth 61 billion won (US$69.7 million) to the investment fund arm of French luxury group LVMH, a move seen as paving the way for expanding its fashion business globally.

more

YG Entertainment said it will issue 1.35 million convertible preferred shares, which are priced at 44,900 won, through a third-party allotment with L Capital Asia, the Asian trading arm of LVMH. The preferred stocks can be converted into common stocks a year later.

"(The stake sale) is aimed at long-term development and entry into new business," the company said in a regulatory filing without giving further details.

"YG Entertainment has already launched a joint venture with Cheil Industries for a new clothing brand, but joining hands with the French luxury group will certainly upgrade it's global brand image, which is a boost to the company in the long term," said Kim Chang-kwon, an entertainment analyst at KDB Daewoo Securities Co.

Its shares closed at 46,000 won at the secondary-KOSDAQ market on Wednesday, up 3.14 percent from the previous session. The new share announcement was made after the market closed.

ejkim@yna.co.kr

Copyrights Yonhap News. All Rights Reserved.

Source Text

Source: Yonhap News (August. 13, 2014)

Related News

    Meta information

    Services

    Invest KOREA provides services support your investment journey.

    Find Nearby Invest KOREA Offices

    Discover nearby offices for Convenient access in your area

    Go to Overseas Office Site