Korean startup unicorn Yello Mobile
is acquiring a 35.4 percent stake in Moda, a local wireless communication equipment maker, for 75 billion won (US$70 million) in a move to expand its presence in the nascent cryptocurrency market.
Moda, in a regulatory filing on Jan. 16, said it will issue 10.47 million new stocks and sell them to Yello Mobile at a share price of 7,160 won. With the payment deadline set for March 27, Yello Mobile will become Moda’s largest shareholder, replacing Daishin Asset Partners which has a 10 percent stake.
Yello Mobile, which owns more than 126 affiliates through aggressive M&As in recent years, owns a 52.05 percent stake in Dayli Financial Group that owns Coinone, one of the nation’s top three virtual money exchanges.
Moda is also shifting its focus to gaming and cryptocurrency. In 2016, the firm acquired Pati Games, a local firm that is preparing for an ICO of game tokens overseas. On Jan. 17, it formed a memorandum of understanding with Pati Games and another game firm Hanbit Soft to allow their tokens to be used at each other’s platforms.
Industry watchers say Yello Mobile may not directly operate its own cryptocurrency exchange but is likely to acquire more blockchain-related firms due to the rosy outlook.
By Ahn Sung-mi (firstname.lastname@example.org