Square Enix withdraws from Tecmo takeover proposal

That was a quick resolution. Unlike other acquisition stories that we know of, Tecmo and Square Enix have already settled the score. Unfortunately for Squeenix, Tecmo hearts Koei more, and so takes the gentlemanly way out.

Square Enix offered. Tecmo rejects. Baffled Square Enix responds to Tecmo’s rejection. Tecmo ignores. Square Enix pulls out. This is how the short-lived love story of the two companies panned out.

The proposed Squeenix takeover was dubbed to be a “friendly” one, offering a controlling interest in Tecmo by purchasing the company’s shares at a 30% minimum. They did also say that if Tecmo rejects the proposal, then they’ll withdraw their offer.

But first, they wanted some explanations now on the following issues:

1. Please confirm that the decision on the start of discussions with KOEI toward integration of management is the reason for rejection of the Proposal.
2. If that is the case, please clarify concretely that major terms of integration of management with KOEI (form of the integration, stock prices assumption, integration ratio and so forth) are favorable for TECMO’s shareholders than the Proposal.
3. If not, please clarify that TECMO has an alternative plan, which is favorable for TECMO’s shareholders than the Proposal.

            The Company will make definitive decision on its plan immediately after receiving a                 response from TECMO.

Well it looks like Tecmo ignored Square Enix’ request for an explanation – not even as to why they were rejected. Now, Square Enix is keeping its word and is thereby withdrawing from the proposal. That was a quick rendezvous.

Best wishes to Tecmo and Koei, then?

• Tecmo rejects Square Enix acquisition offer, plans to merge with Koei
• Square Enix reveals plans of taking over Tecmo
• Square Enix willing to pay a premium for Tecmo shares

Via Square Enix