Kakao to Sell Kakao Games to LY Corporation’s Investment Vehicle

Kakao will sell Kakao Games and step back to become the company’s second-largest shareholder.
On the 25th, Kakao Games announced in a regulatory filing that LAAA Investment, an investment vehicle funded by LY Corporation (LY), will acquire part of Kakao’s stake in Kakao Games. LAAA Investment is also expected to participate in the purchase of new shares and convertible bonds to be issued by Kakao Games.
Under the sale agreement, Kakao, currently the largest shareholder, will sell part of its existing Kakao Games shares to LAAA Investment and reinvest a portion of the sale proceeds back into Kakao Games. As a result, Kakao’s stake in Kakao Games will fall from 37.57% to around 14%, making it the second-largest shareholder, while LAAA Investment will become the largest shareholder.
Kakao Games will secure more than 300 billion won in fresh capital through Kakao’s reinvestment and the new shares and convertible bonds allocated to LAAA Investment. Leveraging this restructuring of its shareholder base, Kakao Games plans to strengthen its execution capabilities in global markets and expand its business scope through a range of collaboration opportunities. In particular, the company aims to broaden its partnership with the new largest shareholder in Japan and other key global markets, and to gradually enhance its global competitiveness by drawing on its in-house development and service capabilities.
wongood@fnnews.com Reporter Joo Won-gyu Reporter