GungHo Online Entertainment, Inc.'s Transfer of Shares in its Specified Subsidiary to SoftBank
GungHo Online Entertainment, Inc. (“GungHo”), a subsidiary of SoftBank Corp. (the “Company”), announces that today its Board of Directors resolved to conclude a share transfer agreement with the Company under which GungHo will transfer all of its shares in its specified subsidiary GGF B.V. to the Company (the “Transaction”).
GGF B.V. has invested in Supercell Oy (“Supercell”), a subsidiary of the Company, through a special purpose company Kahon 3 Oy. Kahon 3 Oy is 79.9% owned by Kahon 2 Oy, a wholly-owned subsidiary of the Company, 20% by GGF B.V. and 0.1% by directors of Supercell Mr. Ilkka Paananen and Mr. Mikko Kodisoja, and holds 51% (diluted) of voting stock of Supercell.
After the Transaction, the Company's ownership in Kahon 3 Oy will reach 99.9%.
1. Reason for the Transaction
The Transaction was proposed to the Company by GungHo based on the reasons described in “1. Reason for the transfer” as attached. Through its global top selling* mobile gaming titles Clash of Clans, Hay Day and Boom Beach, Supercell is expected to sustain high growth going forward. The Company positions the partnership with Supercell as the pillar of its mobile content strategy and accepted the proposal, since it believes that strengthening relations with Supercell through the Transaction will help the growth of the SoftBank Group in the long run.
- *App Annie: Clash of Clans, Hay Day and Boom Beach ranked No. 1 on the Highest Grossing Game Ranking for iPad as of August 6, 2014, in 146, 121 and 81 countries respectively.
2. Impact on the Financial Results
The impact of the Transaction on the Company's consolidated results of operations for the fiscal year ending March 31, 2015 will be minor.
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