Saudi Arabian fund buys 5 percent stake in Nexon
Saudi Arabia's Public Investment Fund (PIF) bought a 5 percent stake in game company Nexon for $883 million, making the Saudi Arabian sovereign wealth fund the fourth-largest shareholder.
The PIF is a $500-billion sovereign wealth fund chaired by Crown Prince Mohammed bin Salman.
It recently disclosed stakes of more than 5 percent in the Seoul-founded and Tokyo-listed Nexon and Japanese game company Capcom through a filing on Thursday.
The purchases were made from Jan. 25 to 27, and the combined holdings in the two companies are worth more than $1 billion. The deal was for "pure investment" purposes, the filing said.
Nexon's stock rose 3.3 percent compared to the previous trading day following the news on Friday, closing at 2,323 yen ($20). Stocks of Capcom also rose by 1.7 percent on Friday.
This is the first time Nexon has received a significant investment from a Middle Eastern fund. The game company is the publisher of online roleplaying games such as MapleStory and Dungeon Fighter.
The company recently made a $400 million investment in AGBO, a film production company co-founded by "Avengers" directors Joe and Anthony Russo.
BY YOON SO-YEON [email@example.com]