Kakao Holds Second Meeting With Small Shareholders, Outlines Growth Strategy After Spin-Off
TECHWORLD ·
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Kakao held its "2nd Small Shareholder Meeting" on the 20th, and executives explained the reasons for the spin-off and the operational direction afterward.
Key executives, including Kim Do-young, the nominee for CEO of KakaoX, attended the meeting, which lasted about 90 minutes and was centered on Q&A.
Kakao discussed growth strategy after the spin-off, measures to enhance corporate value, and ways to boost shareholder value, while exchanging views with shareholders.
Kakao held its second meeting with small shareholders and had executives directly explain the reasons for the spin-off and the company’s operational direction afterward. Kakao held the "2nd Small Shareholder Meeting" on the 20th.
Key executives, including Kim Do-young, the nominee for CEO of KakaoX, attended the meeting. The discussion covered the purpose of the spin-off, growth strategy after the separation, measures to enhance corporate value, and ways to boost shareholder value.
Kakao exchanged views with shareholders at the meeting. The session was conducted mainly as a Q&A and lasted about 90 minutes.
Unlike the first meeting, which was held online only, the second meeting was conducted in both online and offline formats. As a result, participation options were expanded.
Shareholders raised questions mainly about the valuation of KakaoX after the spin-off and its business strategy. In response, Kakao said it plans to disclose in detail the performance and growth strategies of major businesses such as tech-finance, content, and mobility, saying the goal is to reflect market assessments of the value of each individual business.
Kakao explained that under the existing system, there were limits to simultaneously pursuing AI and KakaoTalk-focused operations, promoting advertising and commerce businesses, and managing the growth and investment of major affiliates through a single decision-making structure. It said this underscored the need for the spin-off.
Kakao cited improving expertise by business segment and speeding up decision-making as the purpose of the spin-off. It also reiterated its plan to return value to shareholders after the separation.
KakaoX's shareholder return resources were outlined as 30% of dividend income from subsidiaries and 30% of investment gains. KakaoX plans to pursue KRW 300 billion worth of treasury share purchases and cancellations after the spin-off. KakaoAI will use separately adjusted shareholder free cash flow (FCF) of 20% to 35% as the basis for shareholder returns. KakaoAI also maintained its policy of raising the return ratio to as much as 40% if FCF increases by more than 50% from the previous year.
Kim Do-young, the nominee for CEO of KakaoX, said enhancing corporate value and shareholder value through the spin-off are the main goals of the restructuring. He also said the company would sufficiently explain the purpose of the spin-off and future plans while carrying out its growth strategy, and added that it would listen to shareholder opinions.
Source: TECHWORLD · Kim Seung-gi
Original: https://www.epnc.co.kr/news/articleView.html?idxno=408485
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Source: TECHWORLD
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