Kakao Games raised a total of about 150 billion won through a subsidiary sale and a paid-in capital increase.
According to a filing on the 1st, Kakao Games will sell its entire equity in its screen golf subsidiary Kakao VX to IVG, a subsidiary of Kakao Investment, for 210 billion won. The transaction date is the 15th of this month. The sale proceeded after first acquiring the 34.8% equity (162.3 billion won) held by a financial investor (FI) to settle a shareholders' agreement.
On the same day, Kakao Games said it would raise 108.5 billion won through a third-party allocation paid-in capital increase. A total of 6,920,474 new shares will be issued at 15,680 won per share, with Velvet No. 1 LLC and 2018 QCP No. 13 Private Equity Investment Partnership as the main allottees.
Kakao Games explained that through the sale and the capital increase, it ultimately secured 156.2 billion won in funding. The company will use this for growth investment and to strengthen financial soundness, and plans to accelerate expansion of its PC online and console businesses, including AAA blockbusters.