SoftBank Corp. (“SoftBank”) and GungHo Online Entertainment, Inc. (“GungHo”) announced that they invested USD 1.53 billion (approximately JPY 151.5 billion*) in Supercell Oy (“Supercell”), a mobile game company headquartered in Finland, and hold 51% of Supercell's outstanding voting stock on October 31, 2013 through a special purpose company jointly established in Finland by SoftBank and GungHo (the “Transaction”). For details concerning the Transaction, please refer to the press release “SoftBank and GungHo Announce Strategic Investment of USD 1.5 Billion in Supercell,” dated October 15, 2013.
Acquisition-related Costs for the Transaction
(1) Acquisition-related costs (estimate)
Approximately JPY 3.2 billion
(2) Recording of the acquisition-related costs
SoftBank anticipates recording the full amount of the acquisition-related costs as selling, general and administrative expenses on its consolidated statements of income under IFRSs for the nine-month period ending December 31, 2013. GungHo expects to record approximately JPY 600 million as a part of investment securities on its consolidated balance sheet under JGAAP for the fiscal year ending December 2013.
Impact on the Financial Results
SoftBank will announce the impact of the Transaction on its financial results, once it has been determined. The impact on GungHo's financial results will be minor.