NCSoft on Tuesday accepted its largest shareholder Nexon’s proposal that it would become a more active investor by participating in the rival firm’s management based on its stake
Amid the escalating tug of war between the nation’s top two game developers, the No. 1 Nexon last week asked its runner-up NCSoft to respond to its proposal, including allowing the right to appoint a board member.
On Feb.6, Nexon also revealed the proposal to the public in a rare move to put pressure on NCSoft.
On Tuesday, the deadline set by Nexon, NCSoft sent back its response but the two companies said they agreed not to reveal the contents. Sources, however, said most of the proposal may have been accepted by NCSoft.
In its proposal, Nexon — holding a 15.08 percent share in NCSoft — wanted to have the right to appoint a board member when there is any vacancy on the six-member committee, excluding representative director and NCSoft CEO Kim Taek-jin.
No immediate impact is expected as Kim is likely to retain the title during the shareholders’ meeting planned in March, while the tenure of most of the other members is expected to expire in March next year.
Nexon also asked to inspect the specifications of shareholders’ list but this was also considered a fair requirement as the largest shareholder. Adopting an electric voting system, another requirement, had already been planned to be discussed.
But there is still room for further disputes as NCSoft is undecided on the revelation of its asset sales and salaries of nonexecutive directors, especially its CEO’s wife Yoon Song-yee who was recently promoted as the company’s president.
It was also proposed by Nexon last week but the company’s didn’t specify the deadline for the response at the time. NCSoft protested strongly, saying it was an intervention into its management.
“For the initial requirements, NCSoft may have no other option but to accept them,” said an industry source declining to be named. “The real battle between the two companies will depend on more sensitive issues like the revelation of asset sales and salaries of nonexecutive directors.”
By Lee Ji-yoon (jylee@heraldcorp.com)
