Published : Aug. 11, 2021 - 14:01
Logos of Netmarble (top) and KakaoBank
South Korea‘s gaming giant Netmarble has divested a 1.3 percent stake in KakaoBank to cash in 430.2 billion won ($372.8 million), a filing showed Wednesday.
The disclosure came on the heels of the mobile-only lender’s blockbuster debut on the Korea Exchange on Friday, opening the doors for the early-stage investor in the lender to carry out a partial exit from its investment target.
According to the filing submitted to the Financial Supervisory Service, Netmarble unloaded its 6 million ordinary shares -- or 1.26 percent ownership -- in KakaoBank, at 71,700 won apiece Tuesday.
The transaction price, unveiled after the close of the Tuesday session, was slightly higher than KakaoBank‘s closing price at 71,400 won each after a turbulent session.
As a result, Netmarble’s ownership in the nation‘s largest commercial lender by market cap will reduce to 1.94 percent.
Netmarble’s first investment in the then-fledgling mobile-only bank dates back to 2015, when the lender, along with rival K bank, gained a state approval for operation. Back then, the concept of a lender without brick-and-mortar branches was alien to the country‘s banking industry.
Netmarble was one of the first 11 entities in the investor consortium to back what later became a lending arm of Korea’s internet giant Kakao, for 5,000 won apiece.
Since then, Netmarble has remained a minority stakeholder, taking part in a series of the challenger bank‘s capital increase onward while keeping its ownership below 5 percent. Netmarble had injected a combined 91.7 billion won before the listing.
Netmarble said in the filing that the company will use the proceeds to normalize its cash flow, without disclosing further details.
The decision comes as Netmarble is projected to be saddled with debt in the mid- to long-term through a buyout deal.
A proposed 2.5 trillion-won acquisition of Hong Kong-based social casino game operator SpinX Games was unveiled on Aug. 2, in a bid to diversify its game product portfolio. Netmarble aims to use nearly 1.8 trillion won leverage for the acquisition, which amount to over 30 percent of its equity capital.
Nice Investors Service, a local credit ratings agency, placed Netmarble on a negative watch on Aug. 4, based on a projection that the debt stemming from the proposed takeover will “greatly undermine its balance sheet stability,” considering its uncertainties in mustering up cash to mitigate financial burden and the limited cash flow SpinX is able to generate.
Moreover, a sudden stock price hike of KakaoBank over the past few days of trading has apparently contributed to Netmarble’s divestment.
The share price skyrocketed to at most 130 percent of the offered price at the initial public offering -- 39,000 won apiece -- earlier this week.
Eyes are now on what actions other KakaoBank shareholders will take after the listing. Other than Kakao and Netmarble, KakaoBank‘s shareholders include Korea Investment Holdings, Korea Investment Value Asset Management, Kookmin Bank, Seoul Guarantee Insurance Co., Korea Post, eBay Korea and Yes24.
At around 12 p.m. Wednesday, KakaoBank shares were trading 5.5 percent higher at 75,300 won each, placing its market cap at nearly 36 trillion won -- the 11th-largest on the KRX’s main bourse Kospi.
By Son Ji-hyoung (
consnow@heraldcorp.com)