Naver Financial To Acquire Upbit Operator Dunamu In $10.3 Billion Deal
By: Eliza Bennet
Naver Financial, a subsidiary of the South Korean tech giant Naver, has announced its plans to acquire Dunamu, the operator of the popular cryptocurrency exchange Upbit. The acquisition is structured as a stock-swap deal valued at approximately 15.1 trillion won, equivalent to $10.3 billion. This strategic move aims to bolster Naver's position in the burgeoning cryptocurrency and fintech markets by integrating Dunamu as a wholly-owned subsidiary.
The transaction will be executed by issuing 87.56 million new shares to Dunamu shareholders, effectively transferring ownership of the crypto exchange to Naver Financial. According to a filing, the exchange rate was determined using an external discounted cash-flow valuation method. This approach led to the determination of a corporate value ratio and concluded with an exchange price ratio that reflects the respective market value and outstanding shares of both entities.
The acquisition is driven by the increasing importance of the stablecoin sector and the broader cryptocurrency industry, both of which are experiencing rapid growth. Naver aims to capitalize on this trend by integrating Dunamu's expertise and infrastructure into its financial operations. This deal not only underscores Naver's ambitions in the fintech space but also signals a significant consolidation within the South Korean crypto market. The merger is anticipated to enhance Naver's capabilities in handling digital assets and financial innovations, paving the way for potential future ventures in global markets.
This landmark deal exemplifies the growing intersection between technology and finance, particularly in the realm of cryptocurrencies. As South Korea continues to be a major player in the global crypto landscape, the integration of Dunamu into Naver's operations is expected to set the stage for new developments and innovations in the industry. Observers will be keenly watching how this acquisition could influence market dynamics and regulatory considerations in South Korea and beyond.
