Reports are surfacing that Square Enix could be preparing to buy up another company after it announced the issuance of zero-coupon convertible bonds to the value of JPY 35 billion (USD 386 million).
According to Hiroshi Kamide of KBC Securities Japan (reported by Kotaku), their convertible nature means they can be exchanged for shares at some point before maturity.
The net proceeds of the bonds will be put towards the repayment of an outstanding debt in the form of convertible bonds issued in November 2005, which mature in November 2010, said the company.
But as Square is reported to already have around JPY 80 billion in cash, the raised capital could be ear-marked for a purchase, according to Kamide.
"The cost of borrowing monies is so low in the world at the moment, that Square Enix is being opportunistic in raising funds on the cheap today, just in case it feels like shopping for something," he said.
Last year Square Enix purchased Eidos for GBP 84.3 million following an unsuccessful bid to acquire Japanese developer Tecmo.