GENDA Inc. (Headquarters: Chiyoda-ku, Tokyo, hereinafter “GENDA”) announced that it has resolved to acquire 85.1% of the shares of SEGA Entertainment Inc. (Headquarters: Ota-ku, Tokyo, Representative Director: Satoshi Ueno, hereinafter “SEGA Entertainment”) at its board meeting held on November 4, 2020.
Purpose of Share Acquisition
In order to achieve GENDA’s Aspiration of “Make Everyone’s Life More Enjoyable”, it aims to build a global entertainment network and increase the “total volume of fun” prevailing in the world. GENDA engages in amusement machine leasing, online crane games, sales promotion, character licensing, and operations in China, Taiwan, and the US. The mission of SEGA Entertainment is to create smiles and excitement through our “Tanoshi-ba (entertainment facilities)”. It operates 199 entertainment facilities nationwide, including 193 amusement arcades. It is the third-largest amusement arcade operator in Japan. Together with SEGA Entertainment, GENDA aims to create an active amusement industry that allows all stakeholders including manufacturers, operators, and end users, to feel “the amplification of excitement”
Overview of SEGA Entertainment
(1) Company name
SEGA Entertainment Inc.
(2) Headquarters
Omori Park Building 4th floor, 1-6-1 Omori Honcho, Ota-ku, Tokyo
(3) Name and title of representative
Representative Director and President, Satoshi Ueno
(4) Business description
Operation of amusement arcades and food shops, and lease of amusement machines
(5) Capital stock
100 million (As of September 30, 2020)
(6) Date of Establishment
April 1, 2004
(7) Major shareholder and ownership ratio
SEGA Group Corporation 100%
(8) Performance and financials of the company for the last three years (in Japanese yen)
| FYE | March 2018 | March 2019 | March 2020 |
| Net assets | 20,315 million | 20,300 million | 18,822 million |
| Total assets | 26,603 million | 28,728 million | 31,168 million |
| Net assets per shares | 967,360.05 | 966,665.91 | 896,283.91 |
| Total sales | 37,664 million | 39,392 million | 40,624 million |
| Gross profit | 1,654 million | 1,450 million | 178 million |
| Operating profit | 1,629 million | 1,427 million | 23 million |
| Net profit attributable to parent company shareholders | 804 million | 694 million | ▲915 million |
| Net profit per share | 38,293.95 | 33,064.97 | ▲43,609.02 |
Overview of the counter party of the share acquisition
(1) Company name
SEGA Group Corporation
(2) Headquarters
1-1-1, Nishi-Shinagawa, Shinagawa-ku, Tokyo
(3) Name and title of representative
Chairman and CEO, Representative Director of the Board
President and COO, Representative Director of the Board
(4) Business description
Console business, Amusement business, Toy & Film business, Amusement facilities business
(5) Capital stock
44,092 million (As of September 30, 2020)
(6) Date of Establishment
April 1, 2015
Number of shares to be acquired, acquisition price, and status of shares before and after the acquisition
(1) Number of shares owned before the change
0 (Ratio of voting rights: 0%)
(2) Number of shares acquired
17,882
(3) Number of shares owned after the change
17,882 (Ratio of voting rights: 85.1%)
※The acquisition price will not be disclosed
Timeline
(1) Date of board resolution
November 4, 2020
(2) Date of contract signing
November 4, 2020
(3) Date of completion
December 30, 2020 (Planned)