Naver will conduct a third-party allotment rights issue worth $1 billion (approximately 1.4809 trillion won) targeting Nvidia. Following its $9 billion artificial intelligence (AI) infrastructure procurement deal with global alternative investment firm Brookfield, Naver has now secured Nvidia as a key partner. Analysts say the move marks a full-fledged bid by Naver to seize an early lead in the global "AI factory" market.
Naver said in a regulatory filing on the 27th that it will carry out the $1 billion third-party allotment rights issue to Nvidia.
It marks Naver's first third-party allotment rights issue in 22 years, since 2004. Nvidia will secure a 4.5% stake in Naver (7,241,564 shares), rising to become the third-largest shareholder after the National Pension Service and BlackRock. The payment deadline is October 30.
Nvidia's investment serves as a follow-up to the "gigawatt (GW)-scale mega global AI factory construction agreement" announced by the two companies last month. Naver signed the strategic investment contract at Nvidia's headquarters in Santa Clara, U.S., on the 24th, with Naver board Chairman Lee Hae-jin, CEO Choi Soo-yeon, and Nvidia CEO Jensen Huang in attendance.
In addition, Naver decided to cancel about 1 trillion won worth of 4.9 million treasury shares on the 3rd of next month, as part of efforts to enhance shareholder value. ▷See Page 3
