DoubleUGames Acquires Additional 13.33% Stake in Paxie Games Using Treasury Shares, Strengthening Control with Earn-Out Plan
DoubleUGames resolved to acquire an additional stake in its affiliate Paxie Games as part of a second closing deal.
The acquisition of 13.33% equity will raise its ownership to 73.33% post-transaction.
The purchase consideration of approximately 8,694 million KRW will be paid using existing treasury shares, resulting in no cash outflow.
A future earn-out option is planned to acquire the remaining outstanding shares.
The target company's financials show total assets of 20,482 million KRW, liabilities of 20,477 million KRW, and equity of merely 5 million KRW, with a net loss of 4,696 million KRW in the current year.
The disposal of treasury shares may cause slight dilution, but the move is strategic for enhancing control and long-term growth.
[AI Summary]This additional stake acquisition using treasury shares minimizes cash impact and direct negative pressure on the stock price. However, the target's weak financial health and ongoing losses suggest limited near-term earnings contribution.
KOSPI Filing Information
Filing: Decision on Acquisition of Stocks and Investment Securities of Other Corporations (Voluntary Disclosure)