Square Enix just formally announced its Tecmo bid in an English press release, saying its intentions are “friendly” and consent’s needed for the move from the Tecmno board by September 4.
“We believe that Tecmo will be able to make a great leap forward by joining the Square Enix Group, which will provide the group with further growth opportunities as well,” said the statement.
“We are planning to position Tecmo as a wholly-owned subsidiary of Square Enix Holdings maintaining Tecmo’s current organization and brand as in the cases of Square Enix and Taito.”
Press release after the link. News of the move first emerged this morning.
SQUARE ENIX PROPOSES FRIENDLY TOB TO TECMO, LTD.
London, (29th August 2008 ) – SQUARE ENIX CO., LTD. (the “Company”) announced today that the Company submitted to the board of directors of TECMO, LTD. (Securities Code: 9650, 1st Section of the TSE, “TECMO”) a proposal for basic conditions of acquisition of shares of common stock issued by TECMO (the “TECMO Shares”) through a friendly take over bit (the “TOB”) (the “Proposal”) in order to obtain consent to the TOB by the board of directors of TECMO.
The Proposal was made in order to acquire the TECMO Shares through the TOB, and is subject to obtaining consent by the board of directors of TECMO no later than September 4, 2008. Therefore, please be advised that the Company will NOT acquire the TECMO Shares through the TOB as planned in the Proposal in case that the Company receives no response from TECMO or fails to obtain consent by the board of directors of TECMO to the TOB, by the date. This Notice shall not be construed as solicitation for sales and/or purchase of the TECMO Shares.
1. The reason to submit the Proposal
Video games have been globally recognized as a major entertainment genre, and have now become an industry receiving considerable attention in terms of its market size and growth potential. In the meantime, the game industry in Japan is standing at a critical juncture whether it continues to be a center of the video game industry in the world, or not.
TECMO is a group of excellent creators with proven track-record in the global market, which is a precious human resource of Japan. We, however, cannot be optimistic about the future of this significant resource, given the current circumstances surrounding TECMO.
We believe that TECMO will be able to make a great leap forward by joining the Square Enix Group, which will provide the group with further growth opportunities as well.
We are planning to position TECMO as a wholly-owned subsidiary of Square Enix Holdings maintaining TECMO’s current organization and brand as in the cases of Square Enix and Taito.
2. Major Points of the Proposal
(1) TOB Price: 920 yen per share
Adding a premium of 30%+ to TECMO’s closing stock price as of August 28, 2008 (706 yen).
(2) Number of the TECMO Shares to acquire
Lower Limit: More than half of the outstanding TECMO Shares upon fully-diluted basis (including residual shares subject to stock options).
Upper Limit: None.
(3) Deadline to reply the Proposal: September 4 (Thursday)
If the Company should, by the deadline, receive no response from TECMO, or fail to obtain consent by the board of directors of TECMO to the TOB, the Company will withdraw the Proposal, and will NOT acquire the TECMO Shares through the TOB as planned in the Proposal.
About Square Enix Co., Ltd. and Square Enix, Inc.
With headquarters in Tokyo, Japan, Square Enix Co., Ltd. (Square Enix) develops, publishes and distributes entertainment content including interactive entertainment software and publications in Japan, North America, Europe and Asia. Square Enix brings two of Japan’s best-selling franchises – FINAL FANTASY®, which has sold over 85 million units worldwide, and DRAGON QUEST® which has sold over 45 million units worldwide – under one roof. Square Enix is one of the most influential providers of digital entertainment content in the world and continues to push the boundaries of creativity and innovation.
About Square Enix Ltd.
Located in London, Square Enix Ltd. handles operations in Europe and other PAL territories including sales, marketing and publishing of Square Enix titles. More information on Square Enix Ltd. can be found on the Internet at http://www.square-enix.com
SQUARE ENIX and the SQUARE ENIX logo are registered trademarks or trademarks of Square Enix Co., Ltd. in the United Kingdom and/or other countries. All other trademarks are the property of their respective owners.
Sometimes we include links to online retail stores. If you click on one and make a purchase we may receive a small commission. For more information, go here.