Kakao Games was strong in early trading on the 25th. The move was seen as being driven by news that Kakao would sell management control of Kakao Games to Japan's LY Corporation (Line Yahoo).
As of 9:32 a.m., Kakao Games was trading on the KOSDAQ market at 15,130 won, up 1,140 won (8.15%) from the previous session.
Before the regular session opened, Kakao Games said that LAAA Investment, a special-purpose vehicle funded by Line Yahoo, would participate in a third-party allotment paid-in capital increase worth 240 billion won. The number of shares to be issued is 17,458,354, and the issue price per share is 13,747 won.
LAAA Investment will acquire part of Kakao Games' equity from Kakao and also take part in purchasing new shares and convertible bonds (CB) to be issued by Kakao Games. The contracted convertible bonds amount to 60 billion won.
If the transaction is completed in May, LAAA Investment will become the largest shareholder of Kakao Games. Kakao will become the second-largest shareholder with about 14% equity in Kakao Games.
Through this transaction, Kakao Games will secure about 300 billion won in funds. The company aims to use the transaction to improve financial stability and lay the groundwork for mid- to long-term growth and global business expansion.
Kakao plans to reinvest part of the proceeds from the sale of existing shares in this transaction to continue its collaboration with Kakao Games.