Thursday, August 14, 2014

Louis Vuitton seeks massive investment in YG Entertainment

yg_logo


From MK News:


Louis Vuitton seeks massive investment in YG Entertainment


The world’s top-notch luxury brand group LVMH Moet Hennessy Louis Vuitton is on track to make a large scale investment in the 100 billion won range ($1=KRW970) in South Korea’s one of the top three entertainment companies YG Entertainment. The deal, if materialized, will become the first-ever for overseas luxury brand group to invest in the nation’s entertainment company. Reportedly, Louis Vuitton seeks business partnership rather than attempting to acquire management rights or make profits.


LVMH Moet Hennessy Louis Vuitton is the world’s leading luxury group whose brands include Bulgari and TAG Heuer while YG Entertainment has led the Korean pop culture across Asia with famous singers like Psy, Big Bang and 2NEI. The deal will likely help the two to create significant synergies in expanding their business.


LCapital Asia, a private equity firm (PEF) backed by Louis Vuitton group, is in last-stage negotiations to invest in YG Entertainment, according to investment banking industry in Hong Kong Tuesday. LCapital will likely decide on new rights issue in a third party allocation and invest worth at least 100 billion won, representing around 20 percent of YG Entertainment’s market capitalization worth 571.4 billion won.


The two are fine-tuning how much and how Louis Vuitton will invest after beginning negotiations secretly around June. Reportedly, they will likely opt for a third party allotment rights issue involving redeemable cumulative preference shares (RCPS).




From KoreaTimes:


YG Entertainment to attract W100 billion from LVMH


YG Entertainment, a management agency representing Psy and other top K-pop groups, is reportedly getting a 100 billion won ($97.3 million) investment from LVMH Group.


(Repeated info omitted.)


YG Entertainment solidified its position as the nation’s leading entertainment company in 2012 when its contracted entertainer Psy made a huge splash worldwide with his mega-hit “Gangnam Style.”


It has sought to expand its businesses to diverse fields since then. In May 2013, it founded Next Interactive K, a content distributer, in alliance with KT, the nation’s second largest mobile telecom company, and telecommunication equipment supplier District Holdings.


It also invested 5 billion won in Redrover, an animation company famous for the movie “Nut Job.”




From Reuters:


YG Entertainment shares soar on reports of 100 bln won investment talks


Shares in YG Entertainment Corp , the South Korean management agency of rapper Psy, rose as much as 9.6 percent in early Wednesday after talks of a possible 100 billion won ($97.35 million) investment from a fund arm of LVMH.


Korea Exchange requested YG Entertainment to submit a filing on the issue by 6 P.M. local time Wednesday.


The post Louis Vuitton seeks massive investment in YG Entertainment appeared first on bigbangupdates.


No comments:

Post a Comment