NXC Buys $2.17 Billion of Nexon Shares From Unit, Raising Voting Stake to 46.38%
Summary
- NXC said it will buy common shares in Nexon's Japanese unit held by subsidiary NXMH for 2.9898 trillion won ($2.17 billion), raising its voting stake to 46.38%%.
- The transaction will concentrate NXC's Nexon stake at the parent company, while NXMH's voting stake will fall to about 0.01%%, removing it from the list of major shareholders.
- Industry officials said clarifying NXC's ownership and financial structure would make it easier to explain the setup in any future process involving the government's stake, share buybacks, dividends and cash management.
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NXC, the holding company of the Nexon group, said in a filing on June 22 that it will acquire 118,527,140 common shares in Nexon's Japanese unit from NXMH B.V., its European investment arm, for 2.9898 trillion won ($2.17 billion).
The transaction will lift NXC's voting stake in Nexon to 46.38% from 31.4%. NXMH's voting stake will drop to about 0.01%, removing it from the list of major shareholders.
NXMH is a wholly owned subsidiary of NXC. Industry officials view the deal as an effort to simplify NXC's ownership and financial structure. Interest in NXC's corporate value and asset structure has increased since the government became a major shareholder after accepting inherited shares in lieu of inheritance tax.
Bringing Nexon shares, NXC's core asset, onto the parent company's books would make it easier to explain the structure in any future process involving the government's stake, share buybacks, dividends and cash management.
Ahn Jung-hoon, Hankyung.com reporter, ajh6321@hankyung.com
Korea Economic Daily
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