This article was published on the ChosunBiz MoneyMove site at 9:02 a.m. on April 4, 2025.
The private equity fund operator VIG Partners is approaching the final stages of its acquisition of a minority stake in Kakao Mobility. Multiple institutions have agreed to provide acquisition financing, and the UAE sovereign wealth fund Mubadala is reportedly weighing its participation.
Along with Mubadala's commitment of capital, the remaining task is to obtain consent for the sale of equity from existing financial investors. VIG Partners is reportedly aiming to acquire nearly 40% of the total equity from financial investors. Given Kakao's strong will to streamline its complex equity structure and grow the business, if the financial investors agree, the stock purchase agreement could be executed in the near future.
According to investment banking (IB) sources on the 4th, VIG Partners is currently in the final negotiations to finalize the contract for acquiring a minority stake in Kakao Mobility. One IB industry insider noted, “The negotiations are proceeding faster than expected,” adding, “There are also comments that the fundraising will be completed once Mubadala signs.”
The target for sale is approximately 40% of Kakao Mobility's equity. The overall corporate value is estimated to be in the mid to high 50 trillion won range, which requires about 2 trillion won for the equity purchase. VIG Partners is expected to use funds from its blind fund No. 5 and local and overseas limited partners for the acquisition. It has been reported that the Industrial Bank of Korea and Shinhan Bank will provide acquisition financing, with Woori Bank also positively considering its involvement.
VIG Partners aims to acquire all equity from existing financial investors. Currently, Kakao is the largest shareholder of Kakao Mobility with 57.2%, followed by the TPG consortium at 24.51% and Carlyle at 6.17%. The TPG consortium includes Hanwha Investment & Securities, Orix Private Equity, JC Partners, BlackRock, GEM Capital, OA Mobility Limited Company, and Topanga Private Opportunities. Strategic investors include LG at 2.46%, GS at 2.04%, and Google at 1.52%.
The TPG consortium holds tag-along rights regarding Kakao. This means that when Kakao intends to sell its equity, it is entitled to request a sale under the same conditions. This applies even when Kakao sells only a portion of its holdings, not the entire amount. An industry source remarked, “Even if Kakao sells just one share, the consortium can exercise its tag-along rights,” and added, “Recently, Kakao informed the consortiums to decide on their participation in the co-sale, and I understand that the financial investors are in deliberation.”
One financial investor stated, “The corporate value presented by VIG Partners this time is not bad, and since we have invested for a long time, we intend to participate in the equity sale.”
This transaction is reported to meet the requirements for qualified listing. If the target return rate is not achieved within the set timeframe and the listing does not occur, VIG Partners may acquire some of Kakao's equity to gain management control. However, it is reported that the condition is not to acquire all of Kakao's holdings, as Kakao is said to have a strong will to remain a shareholder.