Kakao Mobility chief asks shareholders to suspend stake sale

Kakao Mobility made a request from the majority of its shareholders. The company asked them not to sell shares to a private equity firm or PEF. Earlier this week, the transportation and taxi-hailing firm’s chief executive officer released an internal notice where he asked for talks on a stock sale deal to be halted.

According to Korea Joongang Daily, Ryu Gung Seon, Kakao Mobility’s CEO, posted the notice on Monday, July 25, and this was revealed by the company’s union. Kakao owns a 57.5% share in Kakao Mobility, and it was said to be exploring the sale of around 10% to 19% of the company.

It was mentioned that one of the potential buyers is the Seoul-based PEF firm, MBK Partners. In an effort to stop the sale, Kakao Mobility’s chief suggested forming a consultative body between the management and workers to have a platform where they can discuss the issue.

The proposal for the setting up of the body was said to have already been submitted to Kakao's Corporate Alignment Center, which manages the operations of all the company’s subsidiaries. It was reported that the CAC accepted the proposal and made a promise to cooperate in resolving the matter related to the stock sale.

"It is not an easy choice for Kakao to forgo its control over the company, but it is necessary for the growth of Kakao Mobility," Kim Sung Soo, Kakao’s chairman, said during an online conference with staff last week regarding the possible sale of shares in the ride-hailing firm.

On the other hand, Kakao Mobility employees expressed support for the suggestion of setting up a consultative body. Seo Seung Wook, the representative of Kakao’s unionized workers, said in a statement, "We support and welcome the proposal to discuss ways for Kakao Mobility to grow together with society. The union will actively join the council to seek ways for coexistence with the society.”

Meanwhile, Pulse News reported that when the stock sale was brought up, the management and employees of Kakao Mobility immediately rejected the idea. They opposed the plan, and Kakao responded by saying that nothing had been decided yet about the sale, and it assured that everyone would be informed if there were discussions about it.