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.
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