Sega Sammy Sells Part of Sanrio Shares, Calls for Employees' Voluntary Retirement
posted on by Alex Mateo
Sega Sammy Holdings Inc., the parent company of the game makers Sega and Sammy, sold 3.51 million of approximately 9.45 million shares of Sanrio as part of its structural reform on Wednesday. Sega Sammy's holding ratio of Sanrio dropped from 11.27% to 7.09%, and dropped from the Sanrio's top shareholder to the number-two shareholder. Kiyokawa Shoji is Sanrio's new top shareholder. Sega Sammy acquired shares of Sanrio for investment purposes in 2006.
Sega Sammy also announced on Friday that it is calling for voluntary retirement of 650 employees and reduction in pay for directors. The company expects to record a loss of approximately 10 billion yen (about US$97 million) in the operating results of the fiscal year ending March 2021 as a result.
Global Entertainment Network for Dreams and Aspirations (GENDA) announced on Wednesday that it has acquired 85.1% of shares of arcade and amusement center company Sega Entertainment. The shares will transfer on December 30.
Through a collaboration with Sega Entertainment, GENDA plans to revitalize the amusement industry and involve manufacturers, operators, and users in the industry. GENDA is aiming to develop an amusement machine rental business.
Sega Sammy Holdings Inc. revealed that Sega Entertainment's percentage of voting rights will become 14.9% following the share transfer. In addition, Sega Entertainment will be excluded from the company's consolidated subsidiaries.
Jiji Press reported on Wednesday that Sega Sammy will withdraw from the domestic arcade management business by the end of the year as a result of GENDA's acquisition. However, Sega Games Holdings told Famitsu that the existing Sega arcades will still retain the Sega name. The arcades' occupancy rate had been declining due to closures from the effect of the new coronavirus disease (COVID-19). The Sega Akihabara Building 2 arcade in Tokyo closed on August 30.
Sega Sammy Holdings Inc. merged its Sega Games Co., Ltd. and Sega Interactive Co, Ltd. companies in April. Sega Games Co., Ltd is the surviving company, but it is under the new name Sega Corporation. Sega Sammy Holdings Inc. did not issue new shares for the merger as the merger is an absorption merger between two wholly owned subsidiaries of Sega Sammy Holdings Inc. Sega Holdings Co., Ltd. also changed its name to Sega Group Corporation. Sega Sammy Holdings Inc. stated that it is reorganizing the company "with the aim of expanding corporate value over the medium to long term."
Sega Games Co., Ltd. was established in June 1960, and Sega Interactive Co., Ltd. was established in April 2015. Sega Games Co., Ltd. handles planning, development, and sales of games for consoles, PCs, and smartphone devices. Sega Interactive Co., Ltd handles development and sales of amusement machines.
Haruki Satomi is serving as President and CEO of Sega Group Corporation, as well as Chairman and CEO of Sega Corporation.