Attempt to sell government's 30% stake in Nexon fails again

Finance

Published: 31 Dec. 2023, 15:49

Attempt to sell government's 30% stake in Nexon fails again

Nexon office in Bundang District of Seongnam, Gyeonggi [NEWS1]

Not even a single bidder took part in the failed second attempt to sell the government's nearly 30 percent stake in gaming giant Nexon.

The failed bidding for the Ministry of Economy and Finance’s 29.3 percent stake in the Tokyo-headquartered company lasted two days from Dec. 25, according to the Korea Asset Management Corporation.

The minimum bidding price was 4.71 trillion won ($3.7 billion).

The first round of bidding took place for two days from Dec. 18, but no bidder participated.

China’s social media giant Tencent and Saudi Arabia’s Public Investment Fund (PIF), a sovereign wealth fund, were mentioned as potential bidders.

However, market analysts say demand was weak due to the high bidding prices and because stake purchasers would not earn management rights over the company.

Tokyo-listed Nexon is well-known for titles like “Nexus: The Kingdom of the Winds,” “MapleStory” and “KartRider.”

The Finance Ministry became the second largest shareholder of Nexon after it acquired a stake in the gaming giant as an inheritance tax from the family of Nexon’s late founder Kim Jung-ju after he died in February 2022.

Kim’s family — his widow and two daughters — hold around 70 percent combined.

The ministry may sell the stake to multiple investors instead of finding a single acquirer following the failed bidding rounds. However, that could bring down the price.

Sales of the ministry’s shares in Nexon will be categorized as national tax income.

The government received more than 8 trillion won in taxes in the form of stocks from 1997 through the first half of this year, according to data by Rep. Song Eon-seok of the People Power Party.

Of this total, only 19.1 percent, or 1.59 trillion won, were sold. The value of the remaining stocks fell to 5.56 trillion won from 6.7 trillion won.

BY JIN MIN-JI [jin.minji@joongang.co.kr]