The company said it expects extraordinary losses of US$193mfor the full fiscal year ending in March 2021 due to the transaction.
Japan.- Sega Sammy Holdings has confirmed it will transfer much of its amusement centres business to GENDA, as it restructures the company following the impact of Covid-19 restrictions on its assets.
The company said: “As the amusement centre operations area in entertainment contents business is strongly affected by Covid-19, utilization of facilities has declined remarkably, and a significant loss was recorded at 1Q of the fiscal year ending March 2021.
“In addition, despite the recent recovery trend, the situation remains uncertain.”
Sales have been struggling for some time at the entertainment company. The group established a structural reform committee to adapt to the new business environment and reduce costs.
After considering various options, the transference of assets to GENDA was decided as it is “a company that has a strong desire to expand amusement centre operations business.”
The operation will involve the transference of shares of Sega Entertainment held by Sega Group Corporation to GENDA.
As a result of the operation, the voting rights of Sega Group Corporation in Sega Entertainment will be 14.9 per cent. The value of the operation was not disclosed.
Sega Sammy said it expects to record extraordinary losses of 20 billion yen (US$193 million) in its full year results ending on March 31, 2021 as a result of the transaction.
It said: “We will continue to work on structural reforms to transform our business structure and organizational structure to adapt to the environment, and to realize an early recover of earnings.”