Codemasters Agrees to $1.25 Billion Electronic Arts Takeover -- Update
December 14 2020 - 4:31AM
Dow Jones News
By Ian Walker
Shares of Codemasters Group Holdings PLC rose 19% in early trade
Monday after the company said that it agreed to a 945 million-pound
($1.25 billion) cash takeover from Electronic Arts Inc., and has
therefore withdrawn its recommendation for an offer from Take-Two
Interactive Software Inc.
Under the deal, accepting shareholders of the U.K. videogames
developer and publisher will get 604 pence for each share held. The
offer price is a 13% premium to Friday's closing price of 534
pence.
Shares in Codemasters at 0845 GMT were up 101.0 pence, or 19%,
at 635.0 pence.
"The board of Codemasters firmly believes the company would
benefit from EA's knowledge, resources and extensive global
scale--both overall and specifically within the racing sector,"
Chairman Gerhard Florin said.
Take-Two said Monday following the news that it is considering
its position in relation to Codemasters and would make a further
announcement when appropriate.
On Nov. 10, Codemasters agreed to a GBP759 million takeover
offer from Take-Two. Under that deal, accepting shareholders were
due to get 120 pence in cash and 0.2834 new Take-Two shares for
each Codemasters share held.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
December 14, 2020 04:16 ET (09:16 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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