REG - Konami Group Corp - Notice: Business Reorganization

KonamiAnnouncement

15/05/2025 07:15

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RNS Number : 8040I  Konami Group Corporation  15 May 2025

 May 15, 2025

 FOR IMMEDIATE RELEASE
                   KONAMI GROUP CORPORATION
                   Kimihiko Higashio, Representative Director, President
   Shares listed:  Tokyo and London Stock Exchanges

   Contact:        Junichi Motobayashi, Corporate Officer,

                   General Manager, Finance Division
   Tel:            +81-3-6636-0573

 

 News Release: Notice Regarding Business Reorganization of Group Companies

KONAMI GROUP CORPORATION (the "Company") hereby announces that it resolved at
the Board of Directors meeting held today to transfer a portion of the
business of its wholly owned subsidiary, Konami Amusement Co., Ltd.  ("Konami
Amusement"), to Konami Arcade Games Co., Ltd.  ("Konami Arcade Games"), a new
company to be established on June 2, 2025, through an absorption-type company
split, with the effective date set as October 1, 2025, as outlined below.

 

1.   Purpose of the absorption-type company split

In recent years, the market environment surrounding arcade games and pachinko
and pachislot machines continues to change significantly. To respond swiftly
and effectively to these changes, the Company Group will establish highly
independent entities focused respectively on the arcade games business and the
pachinko and pachislot machines business, each with a dedicated management
structure.

This reorganization is intended to accelerate decision-making and enable
flexible, responsive management aligned with the specific characteristics of
each market, thereby driving further growth and expansion of both businesses.

Manufacturing and logistics functions will remain centralized within Konami
Amusement to ensure continued operational efficiency across the Group.

 

2.   Summary of the absorption-type company split

(1)  Schedule of the absorption-type company split

Resolution of the Board of Directors: May 15, 2025 (today)

Scheduled execution date of the company split agreement: June 16, 2025

Scheduled effective date of the company split: October 1, 2025

 

(2)  Format of the absorption-type company split

This will be an absorption-type company split, in which Konami Amusement is
the splitting company and Konami Arcade Games is the succeeding company in the
company split.

 

 

 

(3)  Details of allotments related to the absorption-type company split

As this is an internal reorganization between wholly owned subsidiaries of the
Company, no shares or other consideration will be delivered.

 

(4)  Rights and obligations to be assumed by the succeeding company

Pursuant to the absorption-type company split agreement, Konami Arcade Games
will assume assets, contracts, liabilities, and other obligations related to
the arcade game business of Konami Amusement.

 

(5)  Prospects for fulfilling obligations

Following the absorption-type company split, both the splitting company and
the succeeding company are expected to maintain a sound financial position,
and there are no anticipated issues with respect to the fulfillment of their
respective obligations.

 

3.   Overview of the companies involved in the company split

 Splitting Company
 (1) Trade name               Konami Amusement Co., Ltd.
 (2) Location of head office  1, Ikejiri, Takata, Ichinomiya-shi, Aichi 491-0125, Japan
 (3) Representative           Katsunori Okita, Representative Director, President
 (4) Business                 • Planning, development, manufacturing, and sales of arcade games

• Development, manufacturing, and sales of pachinko slots and pachinko
                              machines
 (5) Capital stock            0.1 billion yen
 Succeeding Company in Company Split
 (1) Trade name               Konami Arcade Games Co., Ltd. (scheduled to be established on June 2, 2025)
 (2) Location of head office  1-11-1, Ginza, Chuo-ku, Tokyo, 104-0061, Japan
 (3) Representative           Yoshitaka Nishimura, Representative Director, President
 (4) Business                 Planning, development, and sales of arcade games
 (5) Capital stock            0.1 billion yen

 

4.   Outlook

The impact of this absorption-type company split on the Company's consolidated
financial results is expected to be minimal.

 

End

 

 

Cautionary statement with respect to forward-looking statements and other
matters:

Statements made in this document with respect to our current plans, estimates,
strategies and beliefs, including the above forecasts, are forward-looking
statements about our future performance. These statements are based on
management's assumptions and beliefs in light of information currently
available to it and, therefore, you should not place undue reliance on them. A
number of important factors could cause actual results to be materially
different from and worse than those discussed in forward-looking statements.
Such factors include, but are not limited to: (i) changes in economic
conditions affecting our operations; (ii) fluctuations in currency exchange
rates, particularly with respect to the value of the Japanese yen, the U.S.
dollar and the Euro; (iii) our ability to continue to win acceptance of our
products, which are offered in highly competitive markets characterized by the
continuous introduction of new products, rapid developments in technology and
subjective and changing consumer preferences; (iv) the timing of the release
of new game titles and products, especially game titles and products that are
part of historically popular series; (v) our ability to successfully expand
internationally with a focus on our Digital Entertainment, Amusement, and
Gaming & Systems businesses; (vi) our ability to successfully expand the
scope of our business and broaden our customer base through our Sports
business; (vii) regulatory developments and changes and our ability to respond
and adapt to those changes; (viii) our expectations with regard to further
acquisitions and the integration of any companies we may acquire; and (ix) the
outcome of existing contingencies.

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