Nintendo’s Share Shake-Up
Price declared for Japanese government sell-off its Nintendo holdings….
Has the succcess of the Wii and DS gone to Nintendo's corporate heads? Will Nintendo now be able to talk openly about new product? These are just two of the questions being asked as the company sets the share price that enables the Japanese government to sell off its entire holding in the Wii creator.
In what’s being seen as a strange act to boost the amount of its stock available for purchase in the homeland, Nintendo asked the Japanese government to sell its 1.987-million shares of ‘common’ stock (1.4% of the entire available Nintendo stock).
The price for that sale has now been set at at 30,478 yen (£135.70) per share - a 2.47% discount of the closing price on Tuesday 6th March (Japan). The shares are being held by a government body called the Banks' Shareholdings Purchase Corp – and are to be sold into the market by a syndicate of Japanese stock broking companies.
As we reported earlier in the week, Nintendo staffers have been unable to comment on any forthcoming product in case such news affected the price setting.
Finance journal, Bloomberg, reports that, “Nintendo initiated the sales by approaching the (Banks' Shareholdings Purchase) corporation, Ken Toyoda, the company's spokesman said by telephone. The company is looking to increase the number of individual shareholders to increase liquidity, as products such as its DS handheld player and Wii consoles spur interest in its stock.”
According to an online source, who goes by the name ‘Nintendo Man’ and who runs his ‘nintendostock’ blog at Blogspot, “It would be embarrassing to the Japanese government if the price of Nintendo dropped below the offering price. In that event, a wave of public criticism would surely be leveled at government officials for allowing the Banks entity to dump shares on unwitting purchasers.”
However, NintendoMan – as a shareholder himself – appears bemused and angry as to exactly why the company has taken this route
“Management’s portrayal of this as a way to expand the shareholder base is absurd and evidences a total lack of investment knowledge. It strongly suggests that Nintendo management needs to learn the basics about the care and feeding of shareholders.”
Let’s hope that Nintendo is not making a huge error of judgement based on the massive success of its Wii and DS in recent months. Let’s also hope that Japanese gamers can stump up the 30,748 it requires to purchase a single share – that way the corporation could actually be influenced by the people who buy its products.
SPOnG has contacted Nintendo to discover when - hopefully at GDC - we can expect to hear about any new Wii and DS (OK, and GameCube) offerings.
In what’s being seen as a strange act to boost the amount of its stock available for purchase in the homeland, Nintendo asked the Japanese government to sell its 1.987-million shares of ‘common’ stock (1.4% of the entire available Nintendo stock).
The price for that sale has now been set at at 30,478 yen (£135.70) per share - a 2.47% discount of the closing price on Tuesday 6th March (Japan). The shares are being held by a government body called the Banks' Shareholdings Purchase Corp – and are to be sold into the market by a syndicate of Japanese stock broking companies.
As we reported earlier in the week, Nintendo staffers have been unable to comment on any forthcoming product in case such news affected the price setting.
Finance journal, Bloomberg, reports that, “Nintendo initiated the sales by approaching the (Banks' Shareholdings Purchase) corporation, Ken Toyoda, the company's spokesman said by telephone. The company is looking to increase the number of individual shareholders to increase liquidity, as products such as its DS handheld player and Wii consoles spur interest in its stock.”
According to an online source, who goes by the name ‘Nintendo Man’ and who runs his ‘nintendostock’ blog at Blogspot, “It would be embarrassing to the Japanese government if the price of Nintendo dropped below the offering price. In that event, a wave of public criticism would surely be leveled at government officials for allowing the Banks entity to dump shares on unwitting purchasers.”
However, NintendoMan – as a shareholder himself – appears bemused and angry as to exactly why the company has taken this route
“Management’s portrayal of this as a way to expand the shareholder base is absurd and evidences a total lack of investment knowledge. It strongly suggests that Nintendo management needs to learn the basics about the care and feeding of shareholders.”
Let’s hope that Nintendo is not making a huge error of judgement based on the massive success of its Wii and DS in recent months. Let’s also hope that Japanese gamers can stump up the 30,748 it requires to purchase a single share – that way the corporation could actually be influenced by the people who buy its products.
SPOnG has contacted Nintendo to discover when - hopefully at GDC - we can expect to hear about any new Wii and DS (OK, and GameCube) offerings.
Companies:
Nintendo
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