The company has entered an important economic amount that allows it to acquire 2% of the total shareholding of the Japanese giant.
ValueAct Capital Partners LP has invested $ 1.1 billion in shares of Nintendo Co., thus becoming one of the largest partners in the company led by Shuntaro Furukawa today. According to the information advanced by Reuters, this firm began to get hold of Nintendo shares in April 2019, but it has not been until now when they have increased their direct participation in it.
By means of a letter sent to the group of investors, ValueAct values this important capital movement very positively, which they assume is a long-term transaction thought for their trust in Nintendo as one of the next big companies in the digital sector; at the height of Netflix or Disney +.
Advertising poster at Narita airport, Tokyo | AP / Eugene Hoshiko
"We believe that Nintendo will be one of the largest digital services in the world, in the same category as Netflix, Disney +, Tencent Interactive Entertainment and Apple Music," they argue. ValueAct's attitude will be low profile. Their participation will be more focused on management "and not on making noise publicly," they indicate.
The company indicates, at the same time, that while Nintendo has grown a lot in recent years in digital terms, both EA and Activision have prospered on a larger scale. Now, they assure that Nintendo will be able to embark on an ambitious and capable “digital transition”. Still, they believe Nintendo will have "a bright future."
Nintendo (NTDOY) at the close of this Tuesday, April 21, 2020.
The move has had an immediate effect on the Japanese stock market. Nintendo (NTDOY) closed this Tuesday, April 21, with a 4.20% growth in its share value. In fact, it is at its highest peak in the past two years.
Now, who is ValueAct Capital Partners LP? We are before an investment company founded back in 2000 in San Francisco, California. An investment group worth more than $ 9200 million with stakes in companies such as Microsoft and Adobe in the United States; in Japan at Olympus Corp and JSR Corp.
