Shares in YG Entertainment Inc. the South Korean management agency of rapper Psy, are retreating in Friday trade after rallying for the past two days on news that L Capital is buying a stake in the company.
Shares in YG, traded on the Seoul stock exchange, were down about 5 percent at 48,550 won, or $47.38 in early afternoon trade. They rose by as much as 12 percent on Thursday and 9.6 percent on Wednesday.
YG Entertainment said Wednesday it will sell new shares worth 61.1 billion won, or $59.63 million, to L Capital Asia, the LVMH Moet Hennessy Louis Vuitton-backed investment fund. The Korean company said it is also in discussions with L Capital for the fund to buy additional shares worth 20.4 billion won, or $20 million, in YG.
YG said the deal paves the way for it to expand its fashion business and other fields globally.
Reuters contributed to this report.