À̹ÌÁö È®´ë A blockbuster deal worth more than $6 billion over the ownership of South Korea¡¯s top game publisher Nexon is gaining heat, with big names like Chinese tech giant Tencent and global private equity funds KKR, TPG and Carlyle Group pledging entries in the race that may evolve into another form of high-profile contest between the United States and China over soft power supremacy.
Teaser letters have been sent out to possible buyers including U.S. PE giants KKR, TPG, Carlyle and Korea¡¯s largest PE firm MBK Partners, according to investment banking sources on Thursday.
The list of potential strategic buyers includes American game firms Activision Blizzard Inc. and Electronic Arts Inc. China¡¯s Tencent has reportedly recruited Goldman Sachs as its advisory firm to package an offering. Walt Disney Co. is also said to be interested.
One possible scenario being floated by analysts is of U.S. funds KKR, TPG and Carlyle forming a consortium with American game companies to take on Tencent, the world¡¯s largest gaming publisher.
Nexon has reportedly started an investor road show in San Francisco and Hong Kong. Deutsche Bank¡¯s New York branch has been picked to oversee the deal, people familiar with the matter said.
Up for sale is the entire 98.64 percent stake in Nexon¡¯s holding firm NXC Corp., currently held by its founder and chief executive Kim Jung-ju, his wife and Kim¡¯s private company WiseKids.
À̹ÌÁö È®´ë NXC owns 47.98 percent of Nexon, a publicly traded company in Japan. The Japanese entity controls Nexon Korea, which has stakes in over 10 companies including Europe-based cryptocurrency exchange Bitstamp and children furniture and stroller maker Stokke.
The sale would, in effect, be that of NXC¡¯s 47.98 percent stake in Nexon Japan and involve just the gaming unit, not its cryptocurrency and other businesses. Another asset to be included in the deal is NXC¡¯s 11.4 percent stake in Wemakeprice, a local e-commerce platform.
Considering Nexon Japan¡¯s market cap is around 13 trillion won ($11.6 billion), the deal is likely to be smaller than the initially reported 10 trillion won, with market experts giving estimates of 7 to 8 trillion won.
Shares of NXC subsidiaries jumped Friday, with Nexon GT Co. up 20.5 percent to close at 15,300 won and Nat Games Co. up 29.6 percent at 13,150 won.
By Cho Si-young and Kim Hyo-jin
[¨Ï Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]