The largest shareholder of Kakao Games (293490.KQ) has changed to a special purpose company (SPC) funded by Japan's LY Corp. Kakao Games plans to pursue strategic investments to secure a foundation for mid- to long-term growth, using the large-scale funds secured through the new investment.
Kakao Games disclosed Wednesday that its largest shareholder changed to LAAA Investment following a third-party allotment paid-in capital increase and the execution of a stock purchase agreement. LAAA Investment currently holds a 33.43% stake.
The largest shareholder of LAAA Investment is Petrico Private Equity Fund No. 6, and the largest investor in that company is Japan's LY Corp. (LINE Yahoo), which operates the mobile messenger LINE.
Earlier, LY Corp. participated through LAAA Investment in Kakao Games' 240 billion won third-party allotment paid-in capital increase and a 60 billion won convertible bond (CB) issuance. Kakao Games said Wednesday that all payment procedures for the capital increase and CB issuance had been completed.
With the completion of the acquisition process, the stake of Kakao, the former largest shareholder, decreased from 37.93% to 14.68%.
Based on the approximately 300 billion won in funds secured, Kakao Games plans to begin strategic investments in earnest to strengthen its global business competitiveness and establish a foundation for mid- to long-term growth.
Meanwhile, Kakao Games will hold an extraordinary shareholders' meeting on March 22 to carry out a generational shift in management. At the meeting, the company will handle agenda items including the new appointment of Kim Tae-hwan, chief strategy officer (CSO) of Line Games, and Lee Si-woo, chief business officer (CBO) of Kakao Games, as inside directors. The two candidates will officially take office as Kakao Games' new co-CEOs following the meeting.
