Kakao 分拆前回購並註銷價值 150 billion won 的股份

Kakao will buy back and cancel 150 billion won worth of its shares ahead of its spin-off, bringing forward half of the share repurchase and cancellation plan originally scheduled for after the split. The company has also postponed the split by about a month to Feb. 1, 2027 as the preliminary listing review takes longer than expected.

Kakao’s board approved the share buyback and cancellation plan on Nov. 5. When the company announced its spin-off plan on Aug. 21, Kakao X, the surviving entity responsible for investment operations, was scheduled to repurchase and cancel 300 billion won worth of shares after the split. Under the revised plan, Kakao will execute 150 billion won of the buyback before the split, while Kakao X will carry out the remaining 150 billion won in 2027.

Kakao will begin purchasing shares on the Korea Exchange’s main market on Nov. 6, using cash dividends received from its subsidiary Kakao Investment. All acquired shares will be canceled, with the final number to be disclosed separately.

The company will also increase the cash allocated to Kakao AI, the newly established entity that will oversee KakaoTalk and artificial intelligence (AI) operations. In its revised spin-off plan filed on Nov. 5, Kakao allocated an additional 263.6 billion won in cash to Kakao AI.

As a result, Kakao AI’s net assets will increase from the previously planned 2.9 trillion won to approximately 3.2 trillion won. The additional cash will be used to acquire assets related to Kakao AI.

Reflecting the revised cash allocation and share cancellations, the split ratio between Kakao X and Kakao AI is expected to change from approximately 0.635 to 0.364 to about 0.611 to 0.388. Kakao said the final ratio could vary slightly depending on the actual execution of the transactions.

The two companies will retain the shareholder return policies announced in August. Kakao X will allocate 30% of after-tax dividends received from subsidiaries and 30% of investment gains after deducting capital costs and taxes to shareholder returns. Kakao AI will return 20% to 35% of its adjusted free cash flow on a standalone basis to shareholders. If free cash flow increases by at least 50% year over year, the payout ratio could rise to as much as 40%.

Kakao plans to seek shareholder approval for the split at an extraordinary general meeting on Jan. 15, 2027. If approved, the split will take effect on Feb. 1, followed by the amended listing of Kakao X and the relisting of Kakao AI on Feb. 25.