The merger between Naver Monetary, a subsidiary of Naver, and Dunamu, the operator of Korea’s largest digital asset alternate ‘Upbit’, has entered the ultimate countdown. With Naver Monetary’s company worth estimated at roughly 4.7 trillion to five trillion gained and Dunamu’s company worth estimated at roughly 14 trillion to fifteen trillion gained, an alternate ratio of 1 to three is probably going.
Based on the funding banking (IB) trade on Nov. 19, Naver and Dunamu plan to carry respective board conferences on Nov. 26 to submit complete inventory alternate proposals. Naver and Dunamu are pursuing a merger the place Naver Monetary, the operator of Naver Pay, and Dunamu would alternate shares with one another, making Dunamu a subsidiary of Naver Monetary. If the merger is accomplished on this method, Dunamu would turn into a subsidiary of Naver’s subsidiary. Even when the 2 firms cross the inventory alternate proposal at this board assembly, they need to undergo a particular shareholders’ assembly decision afterward to proceed pursuing the merger. At the moment, consent from greater than two-thirds of attending shareholders and greater than one-third of complete issued shares is required.
The alternate ratio, which is the core of the merger, is prone to be 1 to three. Naver Monetary’s company worth is thought to be estimated at as much as 5 trillion gained, whereas Dunamu’s company worth is estimated at as much as 15 trillion gained. At the moment, Naver Monetary’s largest shareholder is Naver, which holds a 70% stake, whereas the remaining 30% stake is held by Mirae Asset Group. Mirae Asset’s place is that Naver Monetary is undervalued in comparison with Dunamu, but it surely has reportedly agreed to the merger plan in precept. Dunamu, which has extra monetary buyers (FI), might face difficulties on the shareholders’ assembly.
Some trade insiders have predicted that the inventory alternate between the 2 firms may battle with monetary regulatory authorities’ laws. Nevertheless, authorities are recognized to have decided that there are not any issues with the merger underneath present legal guidelines. Accordingly, if the inventory alternate proposal passes on the board conferences, the remaining merger procedures are anticipated to proceed with momentum. If the merger is accomplished with the 1 to three alternate ratio, Dunamu Chairman Music Chi-hyeong would maintain roughly 19% of Naver Monetary shares and Vice Chairman Kim Hyeong-nyeon would maintain roughly 9%, making Dunamu’s administration the biggest shareholders of Naver Monetary. Naver, which at the moment holds a 70% stake, would see its stake fall to round 17%, changing into the second-largest shareholder.
