Saudi Arabia’s Public Investment Fund (PIF) previously purchased a 5.01% stake in Nintendo. This PIF has also invested in other gaming companies, such as Koei Tecmo and Capcom. That was bumped up once more in January, when the PIF snagged a 6.07% stake in Nintendo. Today, that number has risen yet again.
As of right now, Saudi Arabia’s Public Investment Fund (PIF) now holds a 7.08% stake in Nintendo. This continues the PIF’s push to expand into Japanese gaming and obtain a bigger foothold. As far as Nintendo’s day to day operations go, this doesn’t impact Nintendo’s path forward in any way.
I wonder if there was a way companies could refuse to sell shares in cases like this? Does the company being publicly held mean that anyone can buy shares, or can companies say "actually no we'd prefer not to take Saudi Araibia's money."?
Cause, man, it doesn't feel good to know that some of Nintendo's profits/gains would mean that a country that kills journalists/dissidents who speak up (and is associated with other atrocities/issues) gets to take part in those profits/gains...
But I'd feel better if I knew Nintendo couldn't stop them from buying the shares in the first place...and worse if it turns out they could stop them (without going private).
From what I understand, if the shares exceed 10% then Nintendo have the right to step in and reject such an action. I think it has something to do with Japanese laws.
IIRC, the Nintendo CEO (whose name escapes me) did once say in an investors meeting that they do have plans if anyone tries a hostile takeover.
Basically, if it happens then then there are things that can be done to stop it. We, as fans, would likely need to be vocal in opposing such an action for the good of both Nintendo and the Japanese economy
Again, don't quote me on this. I'm no Business McBusinessFace
You are correct that Nintendo has said this. Shuntaro Furukawa (the new president of Nintendo) has already said that they have plans to stop the hostile takeover should it get there.