April 20, 2024

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[THE INVESTOR] NXC, the holding company of Korea’s largest game company Nexon, has offloaded Nexon shares listed on the Japanese stock market worth 146.6 billion won (US$130.3 million), possibly to pursue mergers and acquisitions, according to industry sources on Oct. 26. 

NXC has reportedly sold about 1.1 percent (5 million) Nexon shares in a block deal on Oct. 17. As of the end of last year, it held a 36.2 percent stake in Nexon, which has now decreased to 31.1 percent. 

The firm was established by Kim Jeong-ju in 1989 and has 61 subsidiaries including Nexon and Nexon GT, a domestic listed company.

At the end of last year, NXC had capital of 90.1 billion won and stocks worth 85 billion won in KT Meritz Financial Group and KSS shipping among others. NXC’s decision to sell Nexon stocks despite its abundant capital indicates that the company is planning on pursuing M&A deals, the sources noted. 

Nexon GT began expanding in 2008 with its first acquisition of Neople and continued to grow with acquisition of other gaming companies. Last year, the company acquired 22.40 percent stake in Net Games for 39.1 billion won, and last month the company acquired 65.19 percent stake in domestic virtual money exchange Korbit for 91.3 billion won.

By Alex Lee (alexlee@heraldcorp.com)