Naver to confirm plan to acquire leading crypto exchange operator Dunamu at board meeting next week: sources
Naver headquarters in Seongnam, Gyeonggi Province, Nov. 5 / Yonhap
Naver is expected to confirm its plan to acquire Dunamu, the operator of Upbit, Korea's largest cryptocurrency exchange, at its board meeting planned for next week, industry sources said Wednesday.
Dunamu also plans to hold a board meeting on Nov. 26 to confirm the details of the plan, according to the sources familiar with the matter.
Naver is said to be pushing for a comprehensive stock swap through its fintech subsidiary, Naver Financial, to make Dunamu a wholly owned subsidiary, a move aimed at expanding its business in the digital finance sector.
In detail, the two firms are expected to launch a won-backed stablecoin project, along with other digital finance initiatives, a move that could reshape Korea's digital finance landscape, once the integration is finalized.
After the two companies confirm the plan at their respective board meetings next week, they must get an approval at a shareholders' meeting to officially start integration procedures.
Once the acquisition is finalized, Naver Financial's largest shareholder will likely become Dunamu Chairman Song Chi-hyung, with Naver as the second-largest shareholder.
Industry sources estimate the share-swap ratio between Naver and Dunamu will likely fall in the range of 1 to 3 or 1 to 4.
Naver is the operator of Korea's dominant internet portal, and Upbit is the country's No. 1 and the world's fourth-largest crypto exchange in terms of trading volume.