(Nov 13): Saudi Arabia’s sovereign wealth fund further trimmed its stake in Nintendo Co, deepening a sell-off that began in August.

The Public Investment Fund (PIF) cut its position in the the Kyoto-based games company to 6.3% from 7.5%, according to a filing to Japan’s Finance Ministry. That follows a sale of more than 17 million shares over a six-week period to October.

Nintendo shares fell as much as 4% in Tokyo. While Kyodo News reported in September that the PIF was considering boosting its holding in the creator of Super Mario Bros, the sales since indicate otherwise. 

The Saudi fund, which manages about US$930 billion (RM4.14 trillion) in assets, remains one of Nintendo’s biggest shareholders, according to data compiled by Bloomberg. 

The Saudi government had been buying up stakes in Japanese and South Korean gaming companies in a US$38 billion push to become a video games hub in the Middle East. The kingdom hosted the first Esports World Cup in July and is set to hold the inaugural Olympic Esports Games next year. It hopes to transform Riyadh into a hub for the sector as part of efforts to help diversify the economy away from oil.

The sovereign wealth fund, which is tasked with driving the country’s diversification agenda, has mostly been seen as a long-term investor in gaming, seeking strategic partnerships rather than short-term equity gains. But the PIF is also shifting priorities to focus more on the domestic economy as budget deficits strain the kingdom’s ability to invest in local projects.

Uploaded by Tham Yek Lee