Kakao Games' Largest Shareholder Changes to 'SPC Funded by LINE Yahoo'

Kakao's Stake Decreases from 37.9% to 14.7%

The largest shareholder of Kakao Games has changed from the existing Kakao to a special purpose company (SPC) funded by Japan's LY Corporation, the operator of LINE Yahoo.

On June 19, Kakao Games announced in a public disclosure that, following the execution of a third-party allotment capital increase and a share purchase agreement, "LAAA Investment LLC" (with a 33.43% stake) has become the new largest shareholder. The largest shareholder of LAAA Investment is Petrico No.6 Private Equity Fund, which is primarily funded by LY Corporation, the operator of LINE.

This restructuring of the ownership structure was completed as the LINE Yahoo side participated in Kakao Games’ 100 billion won third-party allotment capital increase and 60 billion won convertible bond (CB) issuance through LAAA Investment. Kakao Games also announced that, as of this date, the payments for both the capital increase and the CB issuance have been fully completed.

Kakao’s stake, which was previously 37.93%, has now been reduced to 14.68%.

A Kakao Games representative stated, “Based on this new investment, we have secured approximately 300 billion won in large-scale funding and financial stability. We plan to use this to strengthen strategic investments aimed at enhancing global business competitiveness and securing a foundation for mid- to long-term growth.”

Kakao Games will hold an extraordinary general shareholders’ meeting on June 22 to discuss the appointment of Kim Taehwan, Chief Strategy Officer (CSO) of LINE Games, and Lee Siwoo, Chief Business Officer (CBO) of Kakao Games, as new inside directors. Both Kim Taehwan and Lee Siwoo, who are candidates for inside directors, are set to be appointed as co-CEOs upon approval.

Kakao Games CI. Kakao Games

This content was produced with the assistance of AI translation services.