Koei, Tecmo formalize merger plans
Koei Tecmo Holdings to go live in April 2009.
Koei and Tecmo announced today that they have agreed to the formation of a joint holding company. Following approval at both firm's shareholder meetings on January 26, 2009, the new firm, Koei Tecmo Holdings, will begin operations on April, 1, 2009.
In the move to the holding company, stock in each firm will be valued at a ratio of 0.9 shares of Tecmo stock for one share of Koei stock. Tecmo and Koei will become full subsidiaries of Koei Tecmo Holdings and will delist from the Tokyo Stock Exchange on March 26.
The two firms are holding a press conference today to share further details on the deal.
This news comes a little over two months after Tecmo and Koei first announced their intentions to merge. Talks between the two firms had begun in response to a buyout offer by Square Enix of Tecmo.
In a joint press release issued today, the firms listed a sales goal of at least 700,000 million yen and operating profit goal of at least 160,000 million yen for the 2011 fiscal year.