Kakao Games Issues 60B KRW Convertible Bonds with Premium Conversion Price, Plans Change in Control
Kakao Games Corp. has decided to issue 60 billion KRW worth of unregistered, non-interest-bearing, unsecured private convertible bonds (correction filing). The payment date has been changed from May 29, 2026 to June 19, 2026.
The preliminary conversion price is 13,812 KRW, a 45.7% premium over the stock price on the board resolution date (March 24), but the final price will be set based on the weighted average price 3 trading days before the payment date. Given the current price of 9,480 KRW, a downward adjustment is possible.
The maximum number of shares issuable upon conversion is 4,344,048 (4.66% of total outstanding shares), implying potential dilution for existing shareholders. The conversion period runs from June 19, 2027 to June 12, 2029.
The bondholder, L-Triple-A Investment, will become the largest shareholder of Kakao Games following the transaction. Its ultimate parent is Petrichor No.6 Private Investment Partnership, with LY Corporation and Kakao Corp. participating as limited partners.
Proceeds will be fully used for operating purposes (improving financial stability and strengthening global competitiveness through growth investments). The bonds carry a 0% coupon and yield to maturity, with principal repaid at maturity on June 19, 2029.
[AI Comprehensive Analysis]While the issuance of convertible bonds signals positive strategic investor interest and capital infusion, the change in control introduces uncertainty, and the potential dilution from conversion poses a medium-to-long-term risk. The final conversion price will be a key determinant of future shareholder value.
KOSDAQ Filing Information
Filing: [Correction of Description] Report on Major Matters (Decision on Issuance of Convertible Bonds)