Shares of Codemasters Group PLC (LON: CDM) are up 2.6% Monday to extend last week’s bull run after the company confirmed media reports that it is in talks with Take-Two Interactive Software regarding a possible takeover bid.
Codemasters, the publisher of popular Formula 1 video game, confirmed the receipt of the non-binding proposal from Take-Two. The offer is made at a price of 485p, slightly higher than 470p – where the price closed on Friday.
If accepted, Take-Two will be paying per 120p in cash and 365p in its own shares. The US-based Take-two is one of the world’s biggest names in the video gaming industry as it owns Grand Theft Auto creator Rockstar Games and NBA 2K developer 2K Games.
“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.
Codemasters management team is set to recommend the offer unanimously to shareholders, subject to a formal offer received before December 4, 2020.
Codemasters share price is up 2.6% to trade at 483p after printing a fresh all-time high at 485p. Shares are trading over 16% higher in November so far after gaining 13.7% in October.
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