August 27, 2014 / 2:00 AM / 3 years ago

Kakao says shareholders approve merger with Daum Communications

SEOUL, Aug 27 (Reuters) - South Korea’s top messaging application operator Kakao Corp said on Wednesday that its shareholders voted to approve the planned all-stock merger with local web portal operator Daum Communications Corp.

The approval was an expected outcome for the deal that allows Kakao Corp to circumvent a potentially time-consuming IPO process with a backdoor listing.

Kakao shareholders, which include chairman Kim Beom-su and Chinese Internet firm Tencent Holdings Ltd, will own about 60 percent of the enlarged company.

Daum’s shareholders were also expected to vote in favor of the merger at a separate shareholder meeting on Wednesday. Daum will issue 43 million new shares to Kakao shareholders based on a valuation of 72,910 won per share, according to regulatory filings, valuing South Korea’s No. 1 messaging application operator at 3.1 trillion won.

1 US dollar = 1,014.9000 Korean won Reporting by Se Young Lee; Editing by Michael Perry

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