[Asia Economy Reporter Seungjin Lee] Lionheart Studio, the developer of the game "Odin: Valhalla Rising," is participating in Kakao Games' paid-in capital increase. Kim Jaeyoung, CEO of Lionheart Studio, will secure 3,128,686 shares, becoming the second largest shareholder.
On the 11th, Kakao Games announced a third-party allotment paid-in capital increase worth 196.6 billion KRW. The number of new shares issued is 3,474,101, with an issue price of 56,600 KRW per share. The payment date is scheduled for August 18, and the new shares are expected to be listed on September 1. The purpose of the capital increase is "acquisition of securities of other corporations, global business expansion, and enhancement of corporate value."
In particular, CEO Kim Jaeyoung will invest approximately 177.1 billion KRW, securing 3,128,686 shares. Through this, Kim Jaeyoung's stake in Kakao Games will increase from the existing 2.88% to 6.55%, making him the second largest shareholder after Kakao. Additionally, key Lionheart Studio developers such as PD Lee Hansoon with 174,872 shares, Technical Director (TD) Lee Junseok with 157,597 shares, and AD Kim Beom with 12,946 shares are also participating in the paid-in capital increase, strengthening the alliance between the two companies.
CEO Kim Jaeyoung and others also participated in a third-party allotment paid-in capital increase last November, acquiring a 3.5% stake in Kakao Games. This is interpreted as reflecting the mutual interest in enhancing corporate value between Kakao Games and Lionheart Studio. Previously, Kakao Games completed a contract to acquire a 30.37% stake in Lionheart Studio for a total of 1.2041 trillion KRW through its wholly-owned subsidiary Kakao Games Europe.
Lionheart Studio is actively pursuing a listing on the KOSDAQ market. Last month, it filed a preliminary review for KOSDAQ listing with the Korea Exchange, and the corporate value recognized through additional share acquisition by Kakao Games approaches 4 trillion KRW.
Regarding this, Kakao Games stated, "We decided on this paid-in capital increase for the purpose of global business expansion and enhancement of corporate value," adding, "Through this capital increase, the two companies will strengthen their relationship and further reinforce their business based on the global market."
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