NCSoft lowers stake in Lezhin Entertainment
[THE INVESTOR] Korea’s leading game developer NCSoft has sold some of its stake in Lezhin Entertainment, which operates a major online comic platform, industry sources said on Sept. 5.
NCSoft sold 98,039 shares, or 2.3 percent, in the webtoon portal for 5 billion won (US$4.46 million ) in the second quarter. The game maker had earlier sold some stake in the comic platform operator following its initial investment in 2014.
The firm had purchased a 15 percent stake, or 582,000 shares, in Lezhin Comics for 5 billion won soon after the startup was launched. It sold 1.4 percent stake in the company for 3.3 billion won in 2016 when Lezhin Comics received funds worth 50 billion won from private equity firm IMM.
This time, the game giant sold 2.3 percent stake for 5 billion won, making a profit of 3.8 billion, and now holds 9.6 percent. Since its initial investment less than five years ago, NCSoft has already recovered 8.3 billion won.
It is expected that the company could make an additional 21 billion won at the current valuation of Lezhin Comics.
“We sold a minor stake as part of recovering our initial investment. We will maintain our strategic partnership,” an NCSoft official said.
By Park Ga-young (firstname.lastname@example.org)