According to investment banking (IB) industry sources on the 30th, TPG has retained domestic and international law firms as its representatives, completed a legal review, and is reportedly planning to file a lawsuit against Kakao with the Hong Kong International Arbitration Centre (HKIAC) as early as next month.
TPG argues that Kakao’s board resolution last month opposing the U.S. ADR listing of Kakao Mobility constitutes a breach of the shareholders’ agreement. This is because the agreement included a clause stipulating that, should the IPO fail within a specified period, Kakao must fully support the listing. In fact, the ADR listing process for Kakao Mobility, led by TPG, was in full swing during the first half of this year; however, the process was halted after Kakao, the largest shareholder, held a board meeting on the 22nd of last month and passed a resolution opposing the listing.
Kakao stated that its opposition to the Kakao Mobility ADR listing was an unavoidable decision made after fully considering the impact on Kakao and its general shareholders, and that it could reconsider its position if changes were made that benefited shareholders. However, if TPG actually proceeds with international litigation, a legal battle between Kakao and TPG appears inevitable.
