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Photo = Yonhap news |
[Alpha Biz= Reporter Kim Jisun] The South Korean government has initiated the process of selling its stake in NXC, the holding company of game giant Nexon. On December 11, it was announced that Korea Asset Management Corporation (KAMCO) has appointed IBK Investment & Securities as the lead manager for the sale of the NXC shares. This follows an unsuccessful attempt to select a manager in October, after which a new public offering was made in November, leading to this selection.
The sale concerns a 30.64% stake in NXC, which was inherited by the family of the late Nexon founder Kim Jung-ju as part of the estate settlement in May 2023. The government has valued this stake at approximately 4.7 trillion KRW, considering both the company's net asset value and a management control premium of around 20%.
However, there are concerns within the investment banking community that the sale may face challenges, as Kim's family still holds about 67.67% of the shares, making the government’s minority stake harder to sell. This follows two failed attempts at public auctions of NXC shares in December 2023. Despite these challenges, the government has included the expected sale revenue, around 3.7 trillion KRW, in the next year's national budget.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
