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Bandai Namco to Record Extraordinary Gain from Toei Animation Share Sale

Strategic divestiture boosts Bandai Namco's net income, countering losses from online game ventures and securing an 8% year-on-year profit increase
Japan
b 7832.TSE Anime 20 Blue Chip 150 Entertainment 100 Games 75 Tech 350
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Bandai Namco Holdings is poised to recognize a substantial extraordinary gain of 41,142 million yen from the sale of its investment securities in Toei Animation. The transaction, scheduled for completion on March 5, 2024, will contribute to the fiscal year ending in March 2024, significantly impacting the company’s financial outlook. As a result of this strategic move, Bandai Namco has revised its full-year consolidated net income forecast to 98 billion yen, indicating an approximate 8% growth from the previous fiscal year, despite recent setbacks in its gaming division.

Historically, Bandai Namco’s investment in Toei Animation has been part of a strategic cross-holding arrangement, reflecting a deep-seated business alliance between the two entities. The relationship was further solidified in 2017 when Bandai Namco increased its stake to become the third-largest shareholder. The sale involves approximately 3.11 million shares, reducing Bandai Namco’s holding but maintaining a significant interest in the animation company.

This profitable divestment comes at a time when Toei Animation sought to enhance its share distribution to meet the Tokyo Stock Exchange Standard Market’s requirements. The decision by Bandai Namco and Sony Pictures Entertainment to sell their shares aligns with this objective, despite the market’s initial adverse reaction to the potential dilution of share value. The extraordinary gain for Bandai Namco underscores the successful long-term value accrued from its investment in Toei Animation, highlighting strategic financial stewardship amid fluctuating market conditions.

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