The founder of South Korea’s largest gaming company Nexon Co. has put the entire 98.64 percent stake in holding company NXC Corp. on the sale block, which could become the biggest-ever Korean M&A deal worth more than 10 trillion won ($8.9 billion).

According to sources close to the deal, Kim Jung-ju, NXC CEO is offering the entire stake he and his family members as well as related company own in the holding entity of the game publisher he had founded in 1994 known for blockbuster labels Blade & Soul Revolution, Dungeon & Fighters, and Maple Story.

Kim currently owns a 67.49 percent stake in the holding company, his wife Yoo Jung-hyun 29.43 percent, and Kim’s private company WiseKids 1.72 percent.

Deutsche Bank and Morgan Stanley are leading the mega-deal and will invite preliminary bidders as early as next month.

The news lifted NXC-related shares listed on the secondary Kosdaq market. Shares of both Nexon GT Co. and NAT Games Co. hit the ceiling for the day on Thursday morning and closed at 8,280 won and 9,580 won, respectively.

Market experts estimate the deal could value near $10 billion, when counting in the value of the companies NXC owns.

Kim wields power over the Nexon empire through NXC which has ownership in Nexon that publicly trades in Japan. The Japanese entity controls Nexon Korea, which has stakes over 10 companies including Europe-based cryptocurrency exchange Bitstamp and children furniture maker Stokke.

Nexon’s market capitalization based on Wednesday’s closing price values nearly 13 trillion won. The Tokyo market is closed until Thursday. NXC owns a 47.98 percent stake in Nexon, making its share worth around 6 trillion won.

Kim reportedly has been frustrated by regulatory restrictions in Korea. Despite the appeal of the deal, the colossal size could make the sale tricky.

Most eager candidates could be Chinese rivals Tencent and NetEase. Korea’s top chat operator Kakao Corp. which has been bolstering gaming operation and local rival Netmarble Corp. could join the race. American video game company Electronic Arts and private equity funds also could be interested.

By Han Woo-ram and Cho Jeehyun

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]