Kakao will sell its equity in SK Square, held through its investment subsidiary Kakao Investment.
According to the financial investment industry on the 10th, Kakao decided to sell a block deal of SK Square equity (off-hours large trading) and began a demand forecast for institutional investors after the market closed that day. Morgan Stanley is the lead underwriter.
The sale size is 2,486,612 shares of SK Square (equity ratio of 1.8%), and the price per share was set at 169,800 won to 173,500 won, applying a discount rate of 5.5% to 7.5% from the closing price (183,600 won) that day.
Earlier this year, Kakao formed a strategic partnership with SK Telecom for an exchange of stocks worth 300 billion won. After SK Telecom conducted a spin-off to establish SK Square, both companies became shareholders.
This year, as the stock value of SK Square rose significantly along with SK hynix's stock price, it is interpreted that Kakao is liquidating its shares in SK Square that were held through Kakao Investment.
As of the end of last year, Kakao evaluated the value of its equity in SK Square at around 200 billion won, but it seems that this block deal could secure up to 430 billion won in cash.
In the industry, there is also an evaluation that the partnership between Kakao and SK Telecom has ended. SK Telecom already disposed of the 2.4% equity it secured through a stock exchange with Kakao in 2019 last April.
However, Kakao still retains its equity in SK Telecom. Kakao noted earlier in April, "(The equity in SK Telecom) is expected to be maintained as is."