GMO Internet, Inc. agreed to acquire remaining 6.8% stake in GMO GameCenter, Inc. from GMO Pepabo, Inc., GMO NIKKO Inc. and GMO Media Inc. for ¥18.9 million.
October 22, 2017
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GMO Internet, Inc. (TSE:9449) agreed to acquire remaining 6.8% stake in GMO GameCenter, Inc. from GMO Pepabo, Inc. (JASDAQ:3633), GMO NIKKO Inc. and GMO Media Inc. (TSE:6180) for ¥18.9 million on October 23, 2017. As per the terms of the transaction, one GMO Internet share will be exchanged for 786 GMO Internet shares. During the merger, 11,790 shares of GMO Internet common stock will be allotted to the shareholders of GMO Internet. No new GMO Internet shares will be issued, as GMO Internet shares will be granted to shareholders of GMO Internet by using shares of GMO Internet treasury stock held by GMO Internet. In a related transaction, GMO Internet, Inc. will acquire remaining stake in GMO Gamepot Inc. After closing, GMO Gamepot Inc. and GMO Game Center, Inc along with GMO Game Center, Inc.'s wholly owned subsidiary Syncloud, Inc will merge with GMO Internet, Inc. and eventually cease to exist. GMO Internet, Inc. will be the surviving entity. There will be no change in GMO Internet, Inc.'s name, address, executive roles, business operations or capital as a result of the merger.
GMO GameCenter Inc. reported net liabilities of ¥4.8 billion, total assets of ¥892 million, net sales of ¥879 million and operating loss of ¥276 million for the year ended December 31, 2016. The transaction does not require shareholder approval. The merger has limited impact on the consolidated earnings as the transaction is an absorption merger and the target companies are consolidated subsidiaries. The transaction is expected to close on December 1, 2017.
GMO Media, Inc. is a Japan-based company mainly engaged in the provision of media business and related services. The Company operates in two business segments. The Media business segment is composed of two service groups of EC media and social media. The Other media support business segment includes advertisement syndicate and AffiTown service, mainly engaged in utilizing the know-how and systems in the media business to support the monetization of external media.
GMO Internet, Inc. agreed to acquire remaining 6.8% stake in GMO GameCenter, Inc. from GMO Pepabo, Inc., GMO NIKKO Inc. and GMO Media Inc. for ¥18.9 million.