Naver (035420.KS), South Korea's largest internet platform, is postponing the shareholders' meetings and transaction closing for a comprehensive stock swap between its subsidiary Naver Financial and Dunamu, operator of cryptocurrency exchange Upbit, by three months. The delay is attributed to slow progress in government approvals and related regulatory procedures.
Naver disclosed on the 30th that the shareholders' meeting dates for both companies to vote on the comprehensive stock swap have been pushed from May 22 to August 18, and the transaction closing date — including the stock exchange and transfer — has been moved from June 30 to September 30.
"Related regulatory approvals and other procedures are currently underway, and we have partially adjusted the schedule to reflect the status of approval processes and related legislative developments in order to ensure a more stable transaction closing," Naver said.
"Naver and Dunamu deeply share the belief that creating synergies by combining each other's strengths is of utmost importance to take on a pioneering challenge toward the global digital asset market in an environment where the digital transformation of finance is accelerating," the company added. "Both companies will make every effort to ensure that the affiliate incorporation process through a comprehensive stock swap — the first step toward pursuing new global business opportunities based on digital assets — is completed without setbacks."
Naver appears to be adopting a wait-and-see approach by pushing back the timeline as related approval processes and legislative preparations have been delayed. In its disclosure, Naver noted that "depending on the progress of relevant regulatory approvals, the schedule may be further delayed or the comprehensive stock swap itself could fall through." The company also stated that "discussions on the Digital Asset Basic Act appear to be underway, and the content of such legislation, once enacted and implemented, may affect the progress or outcome of the comprehensive stock swap."