374 billion won stake acquisition… Chairman Jun-hyuk Bang’s ‘responsible management’
Tencent Directly Acquires 13.4% Stake in Netmarble Corporation
Unprecedented Investment Worth Tens of Billions of Won
Easing Market Pressure Caused by Large-Scale Selling
"Corporate Value and Shareholder Value Are Closely Intertwined"
[Edaily Reporter An Yu-ri ] Chairman Jun-hyuk Bang, founder and largest shareholder of Netmarble Corporation(251270), is drawing industry attention after raising 374 billion won in self-financed funds to acquire an additional 13.4% stake in Netmarble Corporation. This move is viewed as enhancing corporate value and shareholder value, as the largest shareholder directly injected a large sum of capital to alleviate supply-and-demand pressures in the market.
Jun-hyuk Bang, Chairman of Netmarble Corporation and COWAY (Photo: Netmarble Corporation)
On the 21st, Netmarble Corporation announced that Chairman Jun-hyuk Bang had agreed to acquire 13.4% of the 18.1% stake in Netmarble Corporation held by “Han River Investment,” a Tencent affiliate, for approximately 374 billion won.
While there have been consistent instances in the gaming industry of executives acquiring additional shares in their own companies as part of responsible management, it is unusual for an executive to directly raise tens of billions of won to acquire a stake.
Through this transaction, Chairman Bang has strengthened his control over Netmarble Corporation while also significantly expanding his financial stake in the company. This means he will share not only the benefits of the company’s rising value but also the associated risks with existing shareholders.
In particular, this transaction is significant because the largest shareholder directly assumed the supply-and-demand pressure that could have arisen from Tencent’s large stake being released onto the market. By acquiring the shares directly without using company funds, the largest shareholder reduced market uncertainty without affecting Netmarble Corporation’s financial structure or investment capacity.
Industry analysts view this transaction as more than just a simple increase in the largest shareholder’s stake; they see it as an example of responsible management in which the largest shareholder aligns its interests with those of the shareholders to enhance corporate value and shareholder value through large-scale investment.
However, Netmarble Corporation emphasized that this share transaction does not imply any change in the business relationship between Netmarble Corporation and Tencent. Regardless of the change in shareholding structure, the two companies plan to maintain the partnership they have built over the years and continue their collaboration in various fields, including the global gaming business.
A Netmarble Corporation spokesperson stated, “This transaction is significant in that it reduces market uncertainty that could arise from a large-scale change in shareholding, while also enabling the largest shareholder to share its interest in enhancing corporate value and shareholder value more closely with shareholders,” adding, “Regardless of the change in shareholding, our business partnership with Tencent remains unchanged.”
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