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Capcom Shareholders Signal Potential Buyout Interest
Capcom’s shareholders have struck down the company’s existing takeover-defense plan, signaling that the company is open to being acquired. This does not mean that the publisher will be purchased, nor does it suggest how an acquisition might happen.
The defense plan would trigger a series of processes if any shareholder or group sought to control more than 20 percent of outstanding shares. There is currently no proposal for such an action that Capcom is aware of, though.
This move by shareholders lowers the drawbridge for potential buyers, but guards are still posted. The company says it will take available legal measures to prevent a hostile takeover.
This could also be a move from shareholders to spur the directors into action to increase value. This could manifest as a stock repurchase or simply refinement of business strategy. We won’t know until an offer is on the table if shareholders are serious about the desire to sell, or if this is a feint to force the hands of those in governance roles.
[Source: Capcom]
Our Take
There are always layers to corporate and shareholder maneuvering, and it’s not clear if Capcom will sell or if this is a strong-arm tactic. The company closed its fiscal year with year-over-year gains, and things are starting to look up thanks to Dead Rising 3 and Monster Hunter.
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