SEOUL, KOREA - YG Entertainment is set to acquire a listed advertising agency Phoenix Holdings.On November 18, Phoenix Holdings decided to raise a 73.9-billion-won fund through third-party allocation of 16.20 million new shares. The price of newly issued shares will be 4,560 won, a 10-percent discount from the current price.
YG Entertainment and its founder and main producer Yang Hyun-Seok will spend 65 billion won to acquire the newly issued shares, emerging as the largest shareholder of Phoenix Holdings.
YG Entertainment will have 10.5-million shares of Phoenix Holdings, followed by Yang with 2.19 million shares and CEO Yang Min-Seok with 1.09 million shares.
YG Entertainment’s acquisition of Phoenix Holdings is interpreted as part of its strategy to use the advertising agency as a platform for new businesses.
Article provided by The Korea Economic Daily
