YG Entertainment Likely To Return Over 60 Billion Won Invested By LVMH
Financial industry representatives have revealed that YG Entertainment is likely to pay back the money invested by LVMH five years ago.
In October 2014, LVMH Moët Hennessy – Louis Vuitton SE (hereafter LVMH) invested 61 billion won (approximately $51.6 million) in redeemable convertible preference shares (RCPS) of YG Entertainment. At the time of investment, LVMH set the option of converting into common stock at 43,574 won (approximately $36.83) per share or a repayment of 67 billion won (approximately $56.6 million), which includes annual interest, after five years.
If YG’s stocks are priced higher than 43,574 won per share, LVMH can profit by converting into common stock. However, following recent controversies surrounding the company, YG’s stock prices have continued to fall, priced at 23,500 won as of September 15. As a result, financial industry representatives predict that LVMH will choose to receive the repayment of 67 billion won on the set five-year date of October 16, 2019.
Stay tuned for updates.