Bankruptcy And Debts

Bandai Buys Namco

Consolidation Debt Mortgage Reports have spread like wildfire over the 'net this morning about Namco and Bandai merging. The full story is slightly different, with Bandai prepping to actually buy Namco for approximately 1.6 billion dollars. The move would also create the second largest toy/game business entity in Japan right behind Sega Sammy.

The deal is pending shareholder approval, but if all goes according to plan the new holding company, named Namco Bandai Holdings, Inc. would be formed on September 29th, 2005. Bandai would hold a 57 percent stake in the new company while Namco's stake would be the remaining 43 percent.

"Amid severe market conditions we decided a merger was the best way to focus our resources in an effort to boost corporate value, expand our businesses and come out on top of the competition," the two companies offered in a joint press release.

Namco's shares, under terms of the agreement, will be purchased at 10% above the company's last closing price, making them worth 1550 yen. Namco's stock also rose nearly nine percent on the news of the merger whereas Bandai's stock sunk slightly, almost three percent.

AMN will have continuing coverage on this story as it develops. A press conference is scheduled for 7:00 GMT today, where hopefully the companies will deliver a little more insight into what was involved in making their final decisions.

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