Konami to absorb four development units

Japanese publisher Konami is planning to absorb three of its listed development units and one unlisted unit as part of a reorganisation plan set to come into effect at the start of the company's next fiscal year, April 1st 2005.

Under the terms of the deal, Konami JPN, Konami TYO, Konami Studio and Konami Online will all come under the control of one management structure - a move geared to "speed up the decision-making process... and help concentrate production know-how and other resources on our online game business, where there is a large growth potential," according to the company.

Konami JPN has been responsible for the firm's Metal Gear Solid series, and counts renowned designer Hideo Kojima as one of its executives, while TYO produces Pro Evolution Soccer, Dancing Stage, Silent Hill and Suikoden titles amongst others, and Konami Studio is working on Gran Turismo competitor Enthusia Professional Racing.

Konami will issue 10.8 million new shares, valuing the deal at around £116 million. Of the listed development units, one share in Konami Studio will be swapped for 0.42 shares of Konami, one in JPN for 0.81 in Konami, and one share in TYO for a whole Konami share.

Speaking to Reuters, analyst Takeshi Tajima of BNP Paribas said the move was "positive" for Konami, "though the immediate impact on earnings will be limited". "Konami now wants to create a more coherent group structure by reintegrating the companies into the parent at a time when industry competition is heating up," he said.