Video games publisher Codemasters is now ‘in play’ as EA tables its knock-out 604p per share bid for the group.
This morning Take-Two announced that it is considering its position in relation to Codemasters and a further announcement will be made when appropriate.
That follows Codex Games, an indirect subsidiary of Electronic Arts, having made a 604p a share cash bid for the award-winning Southam, Warwickshire-based developer of high-quality racing games across console, PC and mobile.
It has a 34-year track record of producing successful titles, with its franchises including DiRT, GRID, Project CARS and the award-winning F1 series of videogames.
Just last Thursday, I led an article on Master Investor ‘Is the M&A scene heating up in the smaller companies sector?’ featuring Studio Retail and Codemasters, suggesting that another bidder could be about to pounce.
The shares then were just 516p – so the 108p rise this morning alone has taken the price up to 642p.
The CDM Board has been too quick to accept and therefore recommend offers first from Take-Two, then withdrawn this morning, and now from Codex.
The shares jumping above the cash bid really does show that the market considers the company to be ‘in play’ even though it has already recommended its first two offers.
There certainly could be a lot more fun in store, with this gaming group’s shares pointing the way.
(Profile 25.06.19 @ 225p set a Target Price of 278p*)