Keywords Studios confirms £2.2bn approach from Swedish PE firm EQT

20th May 2024 07:19

(Sharecast News) - Keywords Studios said on Monday that it was "minded to accept" a £2.2bn takeover proposal from Swedish private equity firm EQT Partners if it makes a firm offer.

Following press speculation over the weekend, Keywords confirmed it is in "advanced discussions" with a fund which is part of the EQT Group about a possible cash offer of 2,550p per share. This represents a 73% premium to the closing share price on Friday.

The latest approach follows four previous unsolicited proposals from EQT in recent months, which were rejected, and represents a "significant" increase from the initial proposal, Keywords said.

"The board remains confident in the company's growth strategy of building the only truly global platform providing solutions to the video games and entertainment industries, both organically and through acquisitions, and EQT is supportive of this strategy," it said.

"The board of Keywords Studios has carefully evaluated the possible offer with its financial advisers and concluded the possible offer is at a value that the board would be minded to recommend to Keywords Studios shareholders, should a firm intention to make an offer pursuant to Rule 2.7 of the Code be announced on such financial terms, subject to the agreement of all other terms and conditions of an offer."

Under takeover rules, EQT has until 1700 BST on 15 June to either announce a firm intention to make an offer or walk away.

Keywords provides services to the video game industry.

At 0815 BST, the shares were up 63% at 2,400p.