Kakao Healthcare to be Embraced by CHA Bio Group... Largest Shareholder Changes to 'CHA Cares'

Kakao Healthcare will separate from Kakao Group, changing its largest shareholder alongside a paid-in capital increase of approximately 100 billion won. The new owner is CHA Bio Group affiliate 'CHA Cares Co., Ltd.'.

According to the Financial Supervisory Service's Electronic Disclosure System on the 19th, Kakao Healthcare announced that it has decided on a third-party allotment paid-in capital increase totaling 99,999.99 million won to raise operating funds.

This paid-in capital increase will be conducted in two stages in conjunction with the M&A (merger and acquisition) process that changes the company's owner. The company stated through the disclosure, "A stock purchase transaction that entails a change in our largest shareholder is scheduled to proceed simultaneously with this paid-in capital increase." The buyers are CHA Cares Co., Ltd. and CHA AI Healthcare Co., Ltd.

First, 'CHA AI Healthcare Co., Ltd.' will participate in the first paid-in capital increase, paying in approximately 10 billion won. Afterward, once Kakao Healthcare is excluded as an affiliate from the Kakao corporate group, Kakao Corp. and a third party (financial and strategic investors) are scheduled to participate in the second paid-in capital increase (approximately 90 billion won) to be conducted during the first half of next year.

The issuance price of the new shares is 4,713 won per share, and prior to this, Kakao Healthcare plans to reduce the par value per share from 5,000 won to 500 won on December 23.