SEOUL, May 26th (Yonhap) - Daum Communications, the second biggest portal in South Korea Internet, announced this Monday that it will merge Kakao, the largest mobile messaging service in the country, through a share swap agreement .
The agreement of merger and acquisition, announced in a report submitted to regulators, iwill create a sign of information technology (IT) with a market capitalization of 3.4 trillion won (3.3 billion dollars).
It will expected that the two companies will disclose more details in a press conference scheduled for the afternoon of that same day, in Daum's headquarters in Seoul.
Merger is expected to take place on October 1.
"The merger will consolidate core business operations and will create a positive synergy," Daum said, adding that the exchange ratio has been in 1 Daum share by 1.5557456 Kakao shares
