SEOUL Aug 27 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)