Kakao Corp. (KOSE:A035720) agreed to acquire remaining 23.6% in Kakao M Corp. (KOSDAQ:A016170) for approximately KRW 830 billion on May 17, 2018. A merger agreement is expected to be signed on May 18, 2018. As per terms, 0.8023366 shares of Kakao Corp. will be issued as consideration for every one share in Kakao M Corp and thus, 7 million new shares of Kakao Corp. will be issued. The largest shareholder of Kakao Corp., Beom-Soo Kim and his specially related parties collectively hold a 31.94% stake and post-merger, they will remain the largest shareholder in Kakao Corp. and will hold 29.23%. Post completion of merger, Kakao Corp. will be the surviving entity and Kakao M Corp. will cease to exist. The transaction will terminate if any required authorizations or approvals of relevant government authorities is denied, or such events occur. The deal is subject to approval from Board of Directors of Kakao Corp. due on July 5, 2018. The Board of Directors resolved the deal on May 17, 2018. The shareholders can file dissent for the merger from June 4, 2018 to June 18, 2018 and creditors can object the deal from July 6, 2018 to August 7, 2018. On July 5, 2018, the shareholders of Kakao M Corp. and Board of Kakao Corp. approved the transaction. New shares will be listed on September 18, 2018. As on July 26, 2018, Kakao Corp. resolved not to use the rights of merger contract termination through stock option exercise request. It is expected that the merger will increase shareholder value and have a positive effect on the finances and business of Kakao Corp.