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The Korea Herald
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THE INVESTOR
March 29, 2024

Retail & Consumer

LVMH may back out from funding Gentle Monster

  • PUBLISHED :August 04, 2017 - 15:14
  • UPDATED :August 04, 2017 - 16:16
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[THE INVESTOR] French luxury goods conglomerate LVMH is likely to back out from funding Seoul-based Gentle Monster as other investors are willing to pour in larger sums in the sunglass and eyewear company’s upcoming pre-IPO fundraising, according to news reports on Aug. 4.

LVMH’s private equity firm L Catterton Asia has been in talks with Gentle Monster’s parent company Snoop Buy since March to invest about 130 billion won (US$115 million) in the Korean firm valued at about 700-800 billion won. 




However, the talks have stalled as other investors are reportedly offering higher funds.

“Considering Snoop Buy’s tepid stance, it is likely that some investors could have proposed almost 1 trillion won funding,” an investment banker was quoted as saying by Maeil Business News.

Snoop Buy plans to go public on the local stock market once the investment bids are finalized. Mirae Asset Daewoo is the lead deal advisor, along with the secondary Shinyoung Securities, Hana Financial and KB Securities.

Gentle Monster, launched in 2011 with an initial capital of 50 million, has grown into a leading sunglass brand with attractive designs and competitive pricing. Its daily revenue is about 150 million won at Lotte Department Store alone.

Its popularity among Asian visitors skyrocketed when Korean actress Jeon Ji-hyun wore its sunglasses in the drama “My Love from the Star.”

By Alex Lee (alexlee@heraldcorp.com)

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