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Bandai Merges with Namco Date: 5/2/2005 |
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Bandai To Buy Namco for $1.7 Billion -------------------------------------------------------------------------------- Bandai, the third largest toy maker in the world and the parent company of Bandai America, Bandai Visual and Sunrise, has announced that plans to buy videogame maker Namco ltd. and merge it with Bandai. Bandai has already purchased 6.3 percent of and is set to purchase the remainder of the company in a stock swap. The original 6.3% of Namco was puchased with cash for 10.5 billion yen (US$99.9 million) in cash and Namco shareholders will receive 1 share each (per Namco sahre owned) in the new company, Kabushiki Kaisha Bandai Namco Holdings (Namco Bandai Holdings Inc in English). Current shareholders of Bandai will receive 1.5 shares each (per share owned) in Namco Bandai. The total value of the deal is approximately 175.3 billion yen (US$1.7 billion), 13% higher than Namco's closing market value on Friday. Shareholders of the two companies will meet in June to approve the merger. The new company will be formed on September 29 and will be directed by a mixed team of Bandai and Namco executives. The two companies are expected to compliment each other's market weaknesses. Bandai is has a strong stable of character rights, but is weak in technology, while Namco is a video game technology leader but has few stong character brands. Bandai Namco Holdings will be Japans second largest toy and videogame company, after Sega Sammy Holdings, which was formed when Sega Corp. and Sammy Corp. merged in October 2004. |
| Source: Anime News Network |
