Kakao has postponed the effective date of its corporate spin-off from Jan. 1 to Feb. 1, 2027, due to delays in the preliminary review for relisting.
The company also plans to bring forward half of its planned 300 billion-won share buyback and cancellation program, originally scheduled for after the spin-off, as a move to demonstrate its commitment to enhancing shareholder value.
On Thursday, Kakao revised and disclosed its corporate spin-off plan to reflect changes to the spin-off ratio and schedule. Under the revised plan, the extraordinary shareholders' meeting to approve the spin-off, originally scheduled for Dec. 17, has been postponed to Jan. 15, 2027.
The listing change and relisting dates have also been pushed back from Jan. 17 to Feb. 25. The detailed schedule may change depending on consultations with relevant institutions.
Kakao will also allocate an additional 263.6 billion won to Kakao AI, increasing the new company's net assets from about 2.9 trillion won to approximately 3.2 trillion won.
The additional cash will be used to acquire assets related to Kakao AI. Specific spending plans will be finalized through relevant decision-making procedures, including approval by the new company's board of directors.
After the asset allocation and share cancellations are finalized, the spin-off ratio between Kakao X and Kakao AI is expected to change from approximately 0.635 to 0.364 to 0.611 to 0.388. The ratio may vary slightly during the actual implementation process.
Kakao also said its board of directors had decided to buy back and cancel 150 billion won worth of its own shares. The company will use cash dividends from Kakao Investment to fund the program and begin purchasing shares on the Korea Exchange on Nov. 6. All shares acquired will be canceled.
The final number of shares to be canceled will be announced separately at a later date. Kakao plans to buy back and cancel the remaining 150 billion won worth of shares within 2027, after the spin-off.
The shareholder return policies for the two companies following the spin-off, announced in August, will also remain unchanged. Kakao X plans to use 30 percent of its after-tax dividend income from subsidiaries and investment gains, after deducting capital costs and taxes, for shareholder returns.
Kakao AI plans to allocate 20 to 35 percent of its adjusted free cash flow to shareholder returns, with the ratio rising to as much as 40 percent if free cash flow increases by at least 50 percent from the previous year.
in TECH
