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Sammy Corp. to Takeover Sega

TOKYO, Japan – As reported by Bloomberg News: "Sammy Corp., Japan's biggest maker of gambling machines, said it will buy the three quarters of Sega Corp. it doesn't own for about 165 billion yen (US$1.45 billion) in stock, resurrecting a takeover that collapsed in May last year.

"Sammy President Hajime Satomi will head a new holding company that will buy all shares of Sega, the maker of 'Sonic the Hedgehog' video games and Sammy, its biggest shareholder, in October, according to a joint statement. Sammy shareholders will control 72 percent of the new company, which will have combined annual sales of about 501 billion yen this fiscal year.

"Sammy in December bought a 22 percent stake in Sega, which lost a combined 191 billion yen in the five years from 1998. Hatomi, who took over as chairman of Sega after the stake purchase, told reporters at a Tokyo press conference he wants to cut costs and use Sega to expand Sammy's business, which is largely domestic, overseas.

"…Closer cooperation between the two companies, both based in Tokyo, may help the companies save money, executives have said.

"…Sega shareholders will receive 0.28 share of the holding company for each Sega shares. Sammy shareholders will receive one of the new company's shares for each Sammy share, the statement said. Sammy has 87.5 million shares outstanding and controls 22.4 percent of Sega stock. Sega has 174.95 million shares outstanding…"

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