Neopulse, which is pursuing the acquisition of Wemade, has formed an investor consortium with Chinese game company Kings Net and others. Neopulse is expected to complete procedures to acquire the stake held by Wemade Chairman Park Kwan-ho (박관호) by Oct. 30 and become the largest shareholder. Kings Net will participate in the deal by investing in Neopulse's parent company.

On Sept. 14, Wemade and Neopulse said in a joint statement that an investor consortium made up of game-focused investment platform Neopulse and global game company Kings Net and others signed a share purchase agreement on June 30 with Wemade Chairman Park. They added they are proceeding with steps to close the transaction, including payment of the balance and regulatory approval, by Oct. 30.

Neopulse signed a contract on June 30 to buy the 39.33 percent stake in Wemade held by Park for 920 billion won. Including its existing 0.92 percent holding, its stake will rise to 40.25 percent after the deal closes, making it the largest shareholder. A down payment of 92 billion won has already been paid, and the scheduled date for paying the remaining 828 billion won is Oct. 30.

The joint statement also officially confirmed that Kings Net will take part in the transaction to change Wemade's largest shareholder as a member of the investor consortium.

Earlier, Kings Net said in a disclosure to China's securities market that it plans to secure a 49 percent stake in Neosphere through its Hong Kong subsidiary Cypress Technology HK and invest $298 million, about 400 billion won.

Neosphere is the parent company of Neopulse, which will acquire Wemade shares. Neosphere owns 100 percent of Hong Kong-based Seongsong Investment, and Seongsong Investment in turn owns 100 percent of Neopulse. Kings Net will not directly acquire Wemade shares, but will participate indirectly in the Wemade acquisition by securing a 49 percent stake in Neosphere.

If the deal is completed, the investor consortium plans to expand its business in China and global markets based on Wemade.

Wemade and Neopulse said that once the procedures are completed, the investor consortium, as Wemade's largest shareholder, plans to focus on expanding various opportunities including publishing and core IP licensing businesses in global and China markets.

They added they plan to build a system that can respond more strategically to various risks based on extensive understanding of and experience in local markets and industries.

Kings Net also disclosed plans on its investment purpose to build a long-term cooperative relationship with Wemade and expand cooperation on commercialising the 'Mir' IP, launching new games and operating in the China market.

Kings Net has been in a long legal dispute with Wemade over royalties for the 'Legend of Mir 2' IP. The two sides signed a settlement agreement in February, and Wemade received about 43 billion won in settlement money from Kings Net in April. With Kings Net joining the investment consortium, their relationship is also appearing to expand into business cooperation.

Wemade plans to continue its existing business and organisational operations as planned, separately from procedures to change its largest shareholder.

Wemade and Neopulse said Wemade will proceed with the related procedures in close cooperation with the investor consortium, focusing on stable operations and continued growth. They added that key businesses and organisational operations currently being pursued will continue under existing plans without disruption.