NCSoft: Corporate Split-Off of Two Divisions
On 24 June, NCSoft announced a corporate split-off of two divisions called named NC QA Company and NC IDS Company.
NCSoft plans to hold a shareholders meeting where to vote on the split off decision on 14 August. Effective date of the company split is scheduled for 1 October 2024.
The consensus estimates sales of 2.0 trillion won (up 19.2% YoY) and operating profit of 272 billion won (up 155.2% YoY) in 2025.
On 24 June, NCSoft announced a corporate split-off of two divisions called named NC QA Company and NC IDS Company. A corporate split-off will separate the QA service division and the application software development and supply division from NCSOFT. It aims to enhance corporate and shareholder value through a faster, specialized decision-making system and advancement of each business segment. The new subsidiaries(NC QA Company) and (NC IDS Company) will operate as unlisted entities.
NCSoft plans to hold a general meeting where the shareholders will vote on the split off decision on 14 August. The effective date of the company split is scheduled for 1 October 2024. NCSOFT Corp (036570 KS)'s shares rallied by 7.4% to 199,800 won on 25 June. At the end of March 2024, NCSoft had 4,947 employees, of whom about 360 employees (7.3% of total employees) will go to the newly created companies NCQA and NCIDS.
The surviving company after the physical division will continue to be NCSOFT Corp (036570 KS). The two new companies that will be split off include NC QA Company (NCQA) and NC IDS Company (NCIDS). The company split off will be conducted through physical split method in which the divided company continues to exist and is allocated 100% of the issued shares of each new company. The names of these companies are temporary and subject to change later on.
NC QA Company (NCQA) will specialize in game related quality assurance (QA) and other services in the areas of computer programming, system integration and information technology. NCQA will have responsibility for software quality assurance for games. NC QA CEO will be Kim Jin-Seop, who will head up NCSoft's quality assurance.
NC IDS Company (NCIDS) will specialize in the application software development and supply, along with computer system integration consulting, system software development, and related services. . NC IDS will be be Lee Jae-Jin, who was recently hired from Woongjin Thinkbig where he was the CEO.
The following are the major dates for the two divisions split at NCSoft:
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