68

43

News

Louis Vuitton projected to lose 8 billion KRW in their YG Entertainment investment even after being paid back

AKP STAFF
Posted by jennywill Sunday, October 13, 2019

Louis Vuitton is projected to have lost over 8 billion KRW (approximately 6.7 million USD) in their YG Entertainment investment.

Louis Vuitton holds 503,588 stocks in YG Entertainment. They bought the stocks at 40,410 KRW each (32 USD) in October 2014. Louis Vuitton used the method of redeemable convertible preference shares, investing 61.05 billion KRW (approximately 51 million USD) and also buying regular stocks to become the second-biggest stock holder in YG Entertainment after Yang Hyun Suk

The conditions on the stock were that each stock would be changed to a regular stock at 44,900 KRW each, or Louis Vuitton would receive back 67.4 billion KRW (approximately 57 million USD), including a 2% annual interest. Because YG Entertainment stocks plummeted after the Burning Sun incident, Louis Vuitton has demanded the money back, and YG Entertainment will be returning the 67.4 billion KRW on October 15th. However, Louis Vuitton still has regular stocks. 

Because YG Entertainment stocks are currently trading at 23,950 KRW (20 USD), Louis Vuitton will be seeing a loss of 8.29 billion KRW (approximately 7 million USD).

  1. Yang Hyun Suk
  2. YG ENTERTAINMENT
  3. LOUIS VUITTON
29 64,600 Share 61% Upvoted
 
uglybetty
uglybetty25 pts Monday, October 14, 2019 0
Monday, October 14, 2019

theres always risk involved in investment.

7 (+11 / -4)
Share
 
yalalalala (Banned)
yalalalala (Banned)-8,194 pts Tuesday, October 15, 2019 0
Tuesday, October 15, 2019

[+] This user has a poor community rating, click here to read this comment.

1 (+1 / -0)
Share

SHOW ALL COMMENTS

allkpop in your Inbox

THE TOP 10 STORIES DELIVERED DAILY
Baek Ji Young, Jung Suk Won
Apink, Eunji
Nam Bo Ra
Lee Sang Min
I-DLE
Kian84, Park Na Rae
Lee Dong Gun
Han Ji Min
Kim Woo Bin
misc.
Han Ji Min
Apink, Eunji
Nam Bo Ra
Kim Woo Bin
RM (Rap Monster), Tablo
New Message

SEND