Seoul: Kakao Games Corp. announced Wednesday that its largest shareholder will transition to an investment company supported by Japan's technology firm LY Corp. as part of its strategy to restructure equity for international growth.
According to Yonhap News Agency, LAAA Investment is set to acquire a portion of the shares currently held by Kakao Corp. Additionally, LAAA Investment will join in Kakao Games' capital increase and the issuance of convertible bonds, with a total value of 300 billion won (US$200.4 million). The completion of these transactions in May will result in LAAA Investment becoming the top shareholder of Kakao Games, relegating Kakao to the position of the second-largest shareholder.
As it stands, Kakao holds a 37.6 percent stake in Kakao Games and is the leading shareholder. Kakao Games anticipates that this restructuring will enhance its business momentum in international markets and allow for the expansion of its gaming portfolio through increased collaboration opportunities.
In a statement, the company expressed its intent to "expand new growth opportunities in the global market through collaboration with partners, including Kakao and LY."