Sega Sammy will supply €9.25 for every share of the corporate, a 19% premium over Friday’s closing value, in its tender supply bid set to be launched round May 8.
“In the rapidly growing global gaming market, the mobile gaming market has especially high potential, and it has been Sega’s long-term goal to accelerate its expansion in this field,” Sega Sammy chief government officer Haruki Satomi stated in a press release. “I feel blessed to be able to announce such a transaction with Rovio, a company that owns ‘Angry Birds’, which is loved across the world.”
The Wall Street Journal reported final week that Sega Sammy was nearing a deal to purchase the Finnish agency for about $1 billion.
Ahead of the official announcement, shares of Sega Sammy, which presents the motion recreation collection “Sonic the Hedgehog”, closed down 4.2% in a broader market that was just about unchanged.
Sega Sammy shares got here underneath strain after the corporate stated on Monday morning that it was contemplating buying Rovio amid investor doubts about synergy prospects.
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“Sega Sammy’s mobile gaming business is centred on the domestic market, while ‘Angry Birds’ is well known overseas. The acquisition would make it easier for Sega Sammy to grow globally,” Toyo Securities analyst Hideki Yasuda stated.”But there has been no big hit (from Rovio) other than Angry Birds, which was originally launched more than 10 years ago. The news would have been welcomed more positively if investors had seen newer technologies or more growth potentials,” Yasuda stated.
Rovio obtained a €683-million takeover bid in January from Israeli peer Playtika Holding Corp, however the talks had been known as off final month.
Source: economictimes.indiatimes.com