Rumor: SNK Playmore acquired by Chinese Company
There is a rumor that SNK Playmore has been acquired by a Chinese company circulating around. The rumor is based on a recent disclosure of interest document submitted to the Hong Kong Stock Exchange by Leyou Technologies Holdings.
As a rule, publicly listed companies are required to submit a document whenever they acquire a controlling stake in another company.
In the disclosure of interest document they submitted to the HKSE, Leyou Technologies Holdings mentioned a possible investment in a renowned Japanese video game developer, that if materialized will result in the company indirectly acquiring a controlling interest in the target company.
Although the name of the target company was not listed in the document, the target company was described as “a historically distinguished video game hardware and software company with headquarters in Osaka, Japan. The Target Company primarily operates as a third party video game developer and publisher on all major platforms including arcade, PS2, PS3, XBOX 360, Wii and PC. Classic franchise games published or owned by the Target Company include, but is not limited to, the genre of fighting games, run and gun games, and a rail shooter arcade game. The Target Company is most notable for creating a video game platform in the form of home game console in the 1990s. Their most popular and successful console was a portable handheld machine with coloured graphics launched
in 1999. Its successful track record in producing hit games and the fact that it had previously cooperated with Capcom to make hit fighting games, leaves no doubt that the Target Company is one of the most celebrated video game developers in Japanese history.”
Given the description, there is a strong possibility that the target company is in fact SNK Playmore.
It should be noted that the acquisition has not been materialized yet. It is still subject to due diligence and execution of definitive agreements between the parties. The term sheet between the two companies are not legally binding, but Leyou has already paid a $2 million USD non-refundable deposit for entering the agreement.
More about Leyou Technologies
Leyou Technologies Holdings is a Chinese holding companies primarily specialized in chicken farming. Recently, they have been trying to diversify their business. They recently acquired a controlling stake in Digital Extremes, the developer of Warframe and co-developer of the Unreal series.
Here is the official description of Leyou Technologies Holding:
Leyou Technologies Holdings Limited, an investment holding company, manufactures and trades in chicken meat products, animal feeds, and chicken breeds in the People’s Republic of China. It operates through Chicken Meat, Chicken Breeds, and Animal Feeds segments. The company is involved in the slaughtering, production, and sale of chicken meat products, including chicken wings, chicken breast, chicken legs, etc. under the Sumpo brand name to individual and corporate distributors, as well as direct customers, which include fast food chains, restaurants, etc. It also engages in hatching broiler eggs; breeding parent stock day-old chicks; breeding and selling poultry commodity broilers, chicken breeds, and aquatic products; selling packaged food products; and providing breeding techniques consultancy services. The company was formerly known as Sumpo Food Holdings Limited and changed its name to Leyou Technologies Holdings Limited in January 2015. Leyou Technologies Holdings Limited was founded in 1998 and is headquartered in Longyan, the People’s Republic of China.