YG Entertainment’s biggest shareholder Yang Hyun Suk recently sold 45,000 shares (5.8%) through after hours trading.
He now holds 29.99% of shares, down from his previous 35.79%.
Yang Min Suk, Yang Hyun Suk’s brother and YG’s CEO, also reduced his percentage ownership to 5.42%, disposing of 16,000 shares.
The duo put a combined total of 61,000 shares up for sale after markets closed on February 28. At a price of 56,357 Korean won per share, Yang Hyun Suk and Yang Min Suk earned 25.3 billion Korean won (US$23.6 million) and 9 billion Korean won (US$8.4 million) respectively.
These funds are expected to be used for recapitalization.
YG Entertainment announced on February 14 that it would be raising capital by issuing new stock in order to prepare 51.2 billion Korean won (US$47.8 million) for equipment, stock acquisition and other capital requirements.
After the initial offering to shareholders, the forfeited shares are expected to be put up for public sale. With a par value of 500 Korean won per share, the new stocks will be issued at 44,600 won per share.
Once the recapitalization is complete, YG’s total number of stocks issued will be 15.02 million, up from 10.4 million, a 44.4% increase.