Keywords Studios up 62% after EQT approach; could the ante be upped?
Keywords Studios PLC (AIM:KWS, OTC:KYYWF) saw its shares jump 62% in early trading after confirming a £2.2 billion bid approach from EQT Group. The proposed deal, which offers £22.50 per share, represents a more than 50% premium to Keywords' last closing price.
Keywords Studios in Talks With EQT Over $2.58 Billion Takeover
By Ian Walker Keywords Studios is in talks with European private equity company EQT Group over a potential 2.03 billion pound ($2.58 billion) takeover that it would be prepared to recommend to shareholders if a formal offer was made. The London-listed videogame services company said Monday that it is in advanced talks over a possible cash offer worth 2,550 pence a share. The price is a 73% premium to Keywords' closing price of 1,470 pence on Friday. The company said that shareholders would be able to keep the final dividend of 1.76 pence that was declared on March 31 and payable June 28. Keywords said that the board has received four unsolicited proposals from EQT in recent months which it rejected. The latest proposal is subject to a number of conditions being met including due diligence, it added. Keywords said that it remains confident in the company's growth strategy both organically and through acquisitions, and that EQT is supportive of this strategy. EQT has until June 15 to make a formal takeover for Keywords or walk away under U.K. Takeover Panel rules. Write to Ian Walker at [email protected] (END) Dow Jones Newswires 05-20-24 0244ET
