Paris-based Moet Hennessey Louis Vuitton–LVMH seeks to invest in YG Entertainment, South Korea’s leading showbiz agency.
Moet Hennessey Louis Vuitton (LVMH) will be investing more than $97.2 million in South Korean entertainment firm YG Entertainment. The company’s aim is to synchronise their business interactions to create a larger footprint.
LVMH is the parent company of luxury fashion brands Louis Vuitton, Marc Jacobs and Givenchy. YG Entertainment is one of the top three music and artist management firms in South Korea, which boasts of managing globally popular Korean sensations such as Psy, 2NE1, Big Bang, Lee Hi, among others, who have massive influence over Chinese markets.
China is considered one of the most roaring markets for luxury fashion brands
Currently, private equity firm LCapital Asia is reported to be in talks with YG about LVMH’s offer. They are negotiating the issuance of more than ₩100 billion worth of redeemable convertible preference shares, which is equivalent to 17 percent of the former’s market value.
YG’s founder and CEO Yang Hyun-suk currently owns 29.9 percent of the company shares, while his younger brother Yang Min-suk holds 5.42 percent. The company resolves to remove the voting rights associated with stock-owning from the deal in order to preserve managerial rights of the two.
Photo Credits: Red Luxury