YG reportedly preparing to repay 67 billion won investment from Louis Vuitton + netizens react

Discussion in 'K-POP' started by drifter, Jul 14, 2019.

  1. drifter

    drifter Celebrity

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    YG reportedly preparing to repay 67 billion won investment from Louis Vuitton + netizens react
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    dailynaver.blogspot.com

    [​IMG]

    YG Entertainment is reportedly preparing to repay the 67 billion won investment from Louis Vuitton Moe Hennessy (LVMH).

    According to sources, YG is preparing to make the payment using their own cash flow as they're having difficulties converting their own stock due to the recent stock price plunge. The reason for this difficulty is because of YG's declining stock price of over 40% in 6 months as a result of the ongoing prostitution scandal and tax investigations involving its former executive, Yang Hyun Suk as well as 'Burning Sun gate' involving artist and Big Bang member 'Seungri.'

    YG Entertainment received a total of 61.15 billion won from Louis Vuitton in October 2014 with a promise to convert the shares to stock or cash 5 years later. The 135,99688 shares will be converted at a price of 44,400 won. If LVMH chooses not to convert the shares and requests a repayment, YG will have to repay 67 billion won plus 2% annual interest.


    [​IMG]

    According to an investment banking (IB) expert on the 11th, "YG Entertainment announced that they're raising funds for LVMH's convertible preferred stock and have reportedly began the process. YG Entertainment is reported to be looking for a redemption request and not a stock conversion after an official request from Louis Vuitton due to the stock price decline."

    He stated, "even if Louis Vuitton executives decided against redemption and went for a conversion instead with a request for damages, YG will nonetheless be subject to a felony penalty at that point and as a result end up having to repay the investment anyway so this repayment requirement was only a matter of time."

    According to the IB official, "YG has been struggling to deal with the investment ever since the beginning of the year when 'Burning Sun' scandal broke. As a result of the constant news in the media and the declining stock price, Louis Vuitton sent YG Entertainment a preliminary letter requesting a repayment if the situation doesn't improve. The actual official repayment request is expected to be sent to YG Entertainment by the end of July or August as is customary."

    YG Entertainment has stated that even though they're required to pay back this investment this will not affect the company's financial condition.

    Stay tuned for updates.


    [​IMG]
    1. [+4,946, -57] Naver is their 2nd largest shareholder though so Yang Hyun Suk will never be investigated...
    2. [+2,052, -66] Honestly businesses like YG that have no social awareness need to be put out of business...they can adversely affect society if they don't fulfill their corporate social responsibilities...
    3. [+1,059, -19] Are you kidding? Naver is their 2nd largest shareholder and they'll never want to mess with the national pension...just by looking at that alone you can imagine the result..
    4. [+919, -50] Things wouldn't have gotten this bad if he didn't debut with Seo Taiji..Yang Hyun Suk is just a natural born thug..
    5. [+712, -15] The most angry ones are the shareholders of the National Pension..
    6. [+171, -0] YG accounts for 5.5% of the national pension...the public's blood must be boiling right now..
    7. [+72, -1] Why our national pension invests in such a trash company is insane!! Just collect all of it at this point and invest it in growing industries and corporations instead..
    8. [+65, -2] They'll go broke soon..just wait..don't even think about coming out on TV!!
    9. [+60, -2] They have a lot of luxury sponsors so they'll just pimp out all their artists..
    10. [+37, -2] Isn't this bankruptcy??..
    11. [+31, -2] Time to close the pharmacy's doors!!
    12. [+29, -1] Big Bang are the ones that fed them though..

     
  2. Hermes1

    Hermes1 Elite

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    $ 67 Million is exact the revenues of Blackpink IN YOUR AREA TOUR 2018 - 2019

    ($ 65M until July 11 - added Bangkok Tour July 12-14 ~$ 2.7M)
     
    #2 Hermes1, Jul 14, 2019
    Last edited: Jul 14, 2019
  3. Haolat

    Haolat Married to @didi2802
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    So if anything happens to YG or SM the National Pension will be affected.
     
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  4. Lisaaaaa

    Lisaaaaa Celebrity

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    WHOA I didn't know that. I assume SM would then also account for some too
    Yikes. So if they use that then that would mean no profit was gained from the tour
     
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  5. Hermes1

    Hermes1 Elite

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    :cryingk::cryingk::cryingk:
     
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  6. Lulu_Key

    Lulu_Key Veteran

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    wtf?
    so the government decided to invest public pension into entertainment companies?
     
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  7. Jirachier

    Jirachier Super Rookie

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    But that's not their revenue though..
     
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  8. Haolat

    Haolat Married to @didi2802
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    One of the netizens comments states that YG accounts for 5.5% of the National pension. I don’t know if that is true.

    For SM a quick Wikipedia page check shows that the National pension has 4.8% of SM shares
    upload_2019-7-14_13-21-32.jpeg
     
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  9. certified_1

    certified_1 Trendsetter

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    It was done in partnership plus artists also gets a pay check soo...
     
  10. Flowercrew

    Flowercrew Public Figure

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    Yup, they did.

    High risk high return. They shouldn't have though...
     
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  11. Lulu_Key

    Lulu_Key Veteran

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    usually with pension they go for low risk investments, atleast thankfully thats what my country does
     
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  12. Flowercrew

    Flowercrew Public Figure

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    From quick google.

    These are the shareholders of YGE. So the National Pension holds 6.52% YGE shares.

    [​IMG]
     
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  13. Hermes1

    Hermes1 Elite

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    On January 1, 2019 [by finance analyse institute Market Screener]

    YG market value: $ 500 Mio.

    YG market cap: $850 Mio.

    Meanwhile we are far away of this numbers.
     
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  14. Flowercrew

    Flowercrew Public Figure

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    Agree.
     
  15. Hermes1

    Hermes1 Elite

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    YG Entertainment KOSDAQ - 1 year chart

    Highest: 48,900 | Lowest 27,000

    Since Jan. 1, 2019 a lost of
    -57.3%

    upload_2019-7-14_19-33-7.png
     
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  16. Irgendjemand123

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    I can't believe the pension system invested in entertainment

    so weird
     
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  17. Flowercrew

    Flowercrew Public Figure

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    Woah.. That's a huge loss.
     
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  18. LucyCollins

    LucyCollins Rookie

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    They have to pay employees, venues and tons of others costs. People always think 100% of it goes in the artist pocket which is not the case at all. Plus the girls each get their rightfull paycheck so there DEFINITELY is 3/4 of that money gone. What YG does with that 1/4 idk...
     
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  19. Jins_Shoulder

    Jins_Shoulder Newbie

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    Guest 70 wow.......
     
  20. Flowercrew

    Flowercrew Public Figure

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