Tecmo Ltd. and Koei Co. shareholders on Monday approved the merger of the two video game companies under a holding company on April 1.

Tecmo investors will receive 0.9 share in the merged entity for every stock they hold, while Koei stockholders will exchange their shares one for one, the two companies said in November.

Tecmo's second-largest shareholder, Effissimo Capital Management PTE, which was opposed to the merger, may sell its stake of about 18 percent, the Nikkei financial paper said.