Kakao Passes First Step of Spin-Off... Opposition to Kakao Investment Merger Stays at 2%

Kakao, which is in the process of pursuing a spin-off, has cleared its first hurdle. In the initial phase involving a small-scale merger between Kakao and Kakao Investment, the opposition ratio was only in the 2% range, allowing the merger to proceed as planned.

According to industry sources on September 22, during the shareholder opposition period to the merger held from September 7 to 21, shareholders who objected accounted for only about 2% of Kakao's total shares. While a small-scale merger requires only board approval, if shareholders holding 20% or more of the total issued shares object, it must be approved at a general meeting of shareholders.

Pangyo Kakao Ajit, Seongnam, Gyeonggi. Photo by Jinhyung Kang aymsdream@

Previously, Kakao's labor union announced that it would oppose management's spin-off plan and campaign against the merger in alliance with minority shareholders, but these efforts failed to block the proposal.

This merger is part of securing investment resources following Kakao's spin-off. Kakao is pursuing a spin-off into Kakao AI, which will oversee artificial intelligence (AI) and platform businesses, and Kakao X, which will be responsible for investments in new businesses and management of subsidiaries. The cash and investment assets of Kakao Investment are expected to be used by Kakao X as investment resources, while the cash held by the existing Kakao will be allocated to Kakao AI.

Meanwhile, Kakao plans to hold a board meeting on November 6 to approve the absorption merger plan for Kakao Investment.

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