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