Interesting little doggie, and new to me.
I spent a little time with the 20-F. These are what I see as the main concerns:
GungHo - with 59% of the shares, they are in the driver's seat, and the other stockholders are in it for the ride they call. If it were my company, I'd consider winding it up and give everyone all their chips back (remember FIT? See
Message 12282652 and responses ). But there seem to be some pitfalls for ADR holders under Korean law:
You would not be able to exercise dissent and appraisal rights unless you have withdrawn the underlying common shares from the depositary facility and become a holder of our common stock.
In some limited circumstances, including the transfer of the whole or any significant part of our business, our acquisition of a part of the business of any other company having a material effect on our business, or our merger or consolidation with another company, dissenting shareholders have the right to require us to purchase their shares under Korean law. However, if you hold our ADSs, you will not be able to exercise such dissent and appraisal rights
unless you have withdrawn the underlying common shares from the depositary facility and become our direct shareholder prior to the record date for the shareholders’ meeting at which the relevant transaction is to be approved.
sec.gov
(around p.25)
I like it that there are no other large holders of this stock, but having to contend with a majority owner makes me nervous. Presumably, their interest as the Japan licensee would align with GRVY, but there seems to be some opacity there.
How about Ragnarok II. Soon come or never? Will anyone care? I'm too far away from the online gaming world to venture an intelligent opinion. Time for some DD on my part.
Other than that, looks like an interesting speculation. Thanks for bringing it to my attention. |
