Fashion, Music Collaboration
Investment cooperation between YG Entertainment and Louis Vuitton Moet Hennessy (LVMH) has officially started.
YG Entertainment announced on Sept. 13 that LVMH Group invested a total of 82 billion won (approximately US$80 million) in the company.
Regarding this, YG decided in advance to issue 1.35 million stocks to raise operating capital of 61.05 billion won (US$60 million) from L Capital Asia, a private equity fund in the LVMH Goup.
In addition, L Capital Asia plans to acquire the common stocks of producer Yang Hyun-suk, the largest shareholder of YG, for the amount of 20.3 billion won (US$20 million).
For this investment, two companies held an investment agreement ceremony at the Ritz Carlton Hotel Singapore on Sept. 13. Executives of both companies and YG artists attended this event.
Yang Hyun-suk, chief producer at YG, said, “Fashion and music goes together. I have always thought that it is such a pity that there is no fashion brand to represent Korea. From now on, I want to let the world know Korea through music and fashion.”
Ravi Thakran, president of L Capital Asia, also said, “I believe that the cooperation of the two companies becomes a strong foundation for a mutually beneficial relationship in which the potential of the entertainment business is maximized, so that this could be the outlet for new profits, and value is created from new businesses.”
L Capital Asia is headquartered in Singapore and primarily investing in promising brands in emerging countries in Asia such as China and India. Its asset under management is US$1,005 million as of August this year. This is the very first time for L Capital Asia to invest in a Korean company.