Craig of War
Banned
Codemasters Agrees to $1.2 Billion Counterbid From EA - BNN Bloomberg
Codemasters Group Holdings Plc has agreed to a $1.2 billion bid from Electronic Arts Inc., which topped a $956 million offer from Take-Two Interactive Software Inc.
www.bnnbloomberg.ca
"Codemasters Group Holdings Plc has agreed to a $1.2 billion bid from Electronic Arts Inc., which topped a $956 million offer from Take-Two Interactive Software Inc.
The London-traded producer of racing video games said its shareholders will receive 604 pence in cash for each ordinary share of Codemasters, according to a statement on Monday. The rival offer could spark a bidding war for the maker of the popular Formula 1 racing franchise, after video game makers have soared in value with consumers stuck at home due to the pandemic.
Take-Two first revealed a a cash-and-stock deal agreement for Codemasters in November, valuing the U.K. firm at about 528 pence per share based on Take-Two’s last closing price. The EA deal values Codemasters at about 14.4% higher than Take-Two’s offer.
Take-Two’s bid already faced investor opposition. The cash and stock proposal’s value has fluctuated over time, and as of Friday’s close it translated into more than a 1.1% discount to Codemasters’s share price. Columbia Threadneedle Investments has argued the takeover doesn’t value Codemasters as high as its listed peers.
“To strengthen the position that Codemasters has built within the racing category, there is an increasing necessity for additional investment in both resources and skills across its portfolio,” Codemasters said in a statement Monday.
Last edited: