Kakao Issues 339.5 Billion KRW Overseas Convertible Bonds for "M&A Funding" (Comprehensive)

Josuyong (left), Co-CEO of Kakao, and Yeominsu, Co-CEO of Kakao

[Asia Economy Reporter Buaeri] Kakao is pursuing large-scale overseas fundraising to promote mergers and acquisitions (M&A).

On the 21st, Kakao announced that it has decided to issue $300 million (339.5 billion KRW) worth of foreign currency overseas exchangeable bonds on the Singapore Stock Exchange.

The exchange target is 753,407 shares of Kakao's treasury stock, which accounts for 0.9% of the total issued shares.

The exchange price is 450,713 KRW per share, which is 127.5% of Kakao's closing price (353,500 KRW) on the KOSPI market that day. The interest rate is 0%.

A Kakao official stated, "This overseas exchangeable bond issuance is being carried out to secure investment funds to continuously strengthen the competitiveness of Kakao's platform and content," adding, "It will be used as investment acquisition funds for capable domestic and foreign companies."

However, the specific target companies for investment have not been decided.

With this exchangeable bond issuance, Kakao secures M&A funds and also fulfills the obligation to dispose of treasury stock created from the KakaoM merger.

According to the Capital Markets Act, Kakao must dispose of the treasury shares acquired through the exercise of stock purchase rights at the time of the KakaoM merger in September 2018 within five years.

The maturity of the exchangeable bonds issued this time is April 2023.

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