TOKYO, Aug. 29 /PRNewswire/ -- 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 bid (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
a) TOB Price: 920 yen per share
Adding a premium of 30%+ to TECMO's closing stock price as of
August 28, 2008 (706 yen).
b) 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
Upper Limit: None.
c) 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
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(R), which has sold over 85 million units
worldwide, and DRAGON QUEST(R) 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.
Square Enix, Inc. is a wholly owned subsidiary of Square Enix Co., Ltd.
with offices in Los Angeles, California and Seattle, Washington. It handles
operations in North America, including development, localization,
marketing, and publishing of Square Enix titles. More information on Square
Enix can be found on the Internet at http://www.square-enix.com.
SQUARE ENIX and the Square Enix logo are trademarks or registered
trademarks of Square Enix Co., Ltd. in the United States and/or other
countries. All other trademarks are the property of their respective
SOURCE Square Enix Co., Ltd.