[Edaily Reporter An Yu-ri ] Kakao Games Corp.(293490)completed the transaction procedures with its largest shareholder on the 19th to welcome LINE Yahoo as its new owner. LAAA Investment, a special-purpose vehicle (SPV) established by LINE Yahoo, became the largest shareholder with a 33.43% stake, while Kakao will hold a 14.68% stake and become the second-largest shareholder.

Kakao Games Corp. announced in a regulatory filing today that its largest shareholders have changed from Kakao and 13 others to LAAA Investment LLC and 10 others.

This change follows the completion of the payment for the third-party private placement and the execution of the share purchase agreement. The company announced today that both the payment for the share purchase and the subscription for the private placement have been completed.

Consequently, L-Triple-A Investment, a special-purpose vehicle funded by LINE Yahoo, secured a 33.43% stake (35,566,086 shares) and became the largest shareholder. Kakao’s stake decreased from 37.93% to 14.68%, making it the second-largest shareholder.

As a result of this transaction, the number of Kakao Games Corp. issued shares increased from 88,932,902 to 106,391,256. L-Triple-A Investment acquired 18,107,732 existing shares purchased from existing shareholders and 17,458,354 new shares issued through a third-party private placement.

The funds secured by Kakao Games Corp. through this transaction total 300 billion won, comprising approximately 240 billion won from the capital increase and 60 billion won from convertible bonds. This amount is expected to be used as investment capital for securing intellectual property (IP) and expanding global operations.

Kakao Games Corp. stated that the purpose of this transaction was “a strategic investment to strengthen global business competitiveness and secure a foundation for mid- to long-term growth.”

With the corporate governance transaction now complete, Kakao Games Corp. is expected to accelerate its restructuring of the management system. At an extraordinary general meeting of shareholders scheduled for the 22nd, Kakao Games Corp. will propose the appointment of Kim Tae-hwan, Vice President of Line Games, and Lee Si-woo, Chief Business Officer (CBO) of Kakao Games Corp., as new inside directors.