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[May 26, 2009]

SINGAPORE INVESTMENT FUND ASKS TOKYO COURT TO PRICE TECMO STAKE

TOKYO, May 26, 2009 (AsiaPulse via COMTEX) -- Singaporean investment fund Effissimo Capital Management Pte. said Monday that it requested the Tokyo District Court to set a price for its equity stake in Tecmo Ltd., which the fund has been trying to sell back to the video game maker in protest of its merger with Koei Co.

The two video game companies combined to form Tecmo Koei Holdings Co. (3635) on April 1. Effissimo, which opposed the union, still holds 3.89 million, or 16.52 per cent, of Tecmo's outstanding shares. Both sides have been unable to agree on a repurchase price, prompting Effissimo to take the unusual step of seeking court mediation.

The fund is expected to call for a price of at least 900 yen (US$9.49) per share. Effissimo will support its case with facts including the average price it paid for the stake, and a rejected tender offer of 920 yen a share for Tecmo made by Square Enix Holdings Co. (TSE:9684) last August.

Tecmo Koei, meanwhile, favors a price in the mid-600 yen range. The company attributes its recent share price decline to the financial crisis, not the merger. Its stock closed at 640 yen Monday on the Tokyo Stock Exchange, up 1 yen from Friday.

(Nikkei)

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