Shares of blockchain-based platform company Nexters fell more than 20% following news of its acquisition of OneStore.
As of 9:40 a.m. on June 19, Nexters' stock was trading at 2,130 won, down 560 won (20.82%) from the previous trading day, according to the Korea Exchange.
The sharp decline in stock price is attributed to concerns over shareholder value dilution due to a large capital increase and the issuance of convertible bonds (CB) needed to finance the acquisition.
On June 18, Nexters announced it would acquire 84.63% of OneStore's shares from SK Square, Naver, Krafton, and Steel Number One for 62.6 billion won. After the acquisition, Nexters' stake in OneStore will increase to 89.03%, making it the largest shareholder and securing management control.
Nexters plans to develop OneStore into a gaming hub platform, aiming to expand it into a global gaming platform by integrating blockchain technology with artificial intelligence (AI).
On the same day, Nexters disclosed plans to conduct a third-party allocation capital increase of approximately 39.5 billion won targeting SK Square, Naver, and Krafton, along with issuing convertible bonds worth 21.2 billion won.
The total amount raised through the capital increase and convertible bonds will be around 60.7 billion won, which is similar to the acquisition cost of OneStore. The concerns over stock value dilution and increased financial burden have contributed to the decline in share price.
Meanwhile, SK Square, Naver, and Krafton will participate as strategic investors in this capital increase.
* This article has been translated by AI.
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