Nintendo Announces Plan To Acquire JESNET
Nintendo has announced plans to acquire JESNET, which will see the Japanese distributor now become a subsidiary of the company.
The move shows an ambition to “unify Nintendo’s product development acument with JESNET’s and AJIOKA’s robust stocking and sales networks to form a supply structure that can meet consumer demand in a timely fashion.”
That means that Nintendo now has an integrated system that runs from development right through to the supply of its products, which allows for “rapid decision-making an an improvement in sales service.”
It is also hoped that this will help the company strengthen their “overall competitiveness,” while increasing its corporate value.
Nintendo plans to acquire 53,724 common shares in JESNET on 3rd April 2017, and a further 6,677 common shares from multiple current shareholders. The 60,401 common shares that amounts to will see the company hold 70 percent voting rights, with JESNET to become a consolidated subsidiary.
JESNET holds 100,922 shares in Nintendo, and AJIOKA another 77,571, in order “to facilitate the smooth business relationship.”
Nintendo adds: “This subsidiarisation and acceptance of assignment of business will not have an effect on results for this fiscal year. Nintendo will begin including the effect on results in the earnings forecasts for the next fiscal year and later.”