Ten years of 'Mir's Legend' IP dispute ends with Kingnet as top shareholder
Consortium to hold 40.25% stake; balance due by Oct. 30
Kingnet, the Chinese game company locked in a decade-long legal dispute with Wemade over intellectual property rights to "Mir's Legend," is set to become Wemade's largest shareholder. Upon completion of the deal, the investor consortium will hold a 40.25% stake in Wemade.
Wemade said Monday that it expects to complete the change-of-largest-shareholder process by Oct. 30 with an investor consortium comprising Chinese investment firm Neopulse and global game company Kingnet, among others.
According to a disclosure filed with the Shenzhen Stock Exchange, Kingnet will acquire a 49% stake in Neosphere through its Hong Kong subsidiary Cypress Technology HK. Kingnet's planned investment totals $298 million.
On June 30, the consortium signed a share purchase agreement to acquire the entire stake (39.33%) held by Wemade Chairman Park Kwan-ho for approximately 920 billion won ($683 million). Once the deal closes, the consortium's stake in Wemade will reach 40.25%.
Wemade and the investor consortium are working through the remaining procedures needed to close the deal by Oct. 30, including payment of the balance and regulatory approval. According to a Wemade disclosure, the remaining balance the consortium must pay stands at 828 billion won.
After becoming the largest shareholder, the consortium plans to expand business opportunities in global and Chinese markets, including publishing and core IP licensing. It also intends to build a strategic framework to manage business risks, drawing on its experience and understanding of the Chinese market and industry.
Wemade said it will work with the consortium to complete the relevant procedures without disruption and will continue its key ongoing projects and organizational operations in line with existing plans.
chami@heraldcorp.com
