Kakao Investment completed the sale of its 1.88% stake in SK Square, raising 429.7 billion won ($312.8 million) through a discounted block deal that underscores the tech conglomerate’s shift toward artificial intelligence investments.
The venture capital arm disposed of 2.48 million shares at 172,800 won each, representing a 5.88% discount to the previous day’s closing price. Morgan Stanley managed the transaction, which was finalized before Friday’s market opening.
Kakao Investment cited the need to “secure capital for future investments, including artificial intelligence” as the primary driver for the divestment. The timing appears opportunistic, capitalizing on SK Square’s recent share price surge driven by expectations around easing the “conglomerate discount” and strong earnings from affiliate SK Hynix.
The sale continues a pattern of cross-shareholding unwinding between Kakao and SK Group companies. SK Telecom divested its entire Kakao stake worth 413.3 billion won ($300 million) in April, effectively dismantling their 2019 strategic partnership.
Kakao’s financial statements valued the SK Square stake at about 200 billion won at year-end, making the 429.7 billion won proceeds a substantial gain. The company retains its 1.79% holding in SK Telecom.
Market observers view the transaction as financially astute, with Kakao capitalizing on favorable market conditions while repositioning its portfolio toward higher-growth AI opportunities.
