Codemasters Group Holdings PLC (LON:CDM) has confirmed speculation that it is in discussions with US video game publisher Take-Two Interactive Software Inc (NASDAQ:TTWO) regarding a possible takeover offer.
In an announcement in late afternoon last Friday, the maker of the F1 racing video game franchise said it has received a non-binding proposal from Take-Two, which owns Grand Theft Auto creator Rockstar Games and NBA 2K publisher 2K Games, to acquire Codemasters at a price of 485p per share comprising 120p in cash and 365p in Take-Two shares.
The offer represents an 11.5% premium to Codemasters’ 435p closing price on November 5, the last full trading day before the offer was announced, and values the company at around £739mln.
Codemasters said it currently intends to recommend the offer unanimously to shareholders should a firm offer be made before the deadline of 5pm on December 4.
In a separate announcement, Take-Two said it believes the combination will “bring together two world-class interactive entertainment portfolios, with a highly complementary fit between 2K and Codemasters in the racing genre”.
“Take-Two believes that it can bring benefits to Codemasters performance by leveraging Take-Two global distribution and 2K’s core operating expertise in publishing, including, live operations, analytics, product development, and brand and performance marketing”, the company said.