(Alliance News) - Games developer Codemasters Group Holdings PLC said Friday it raised GBP20 million through a share placing in order to help fund its acquisition of fellow developer Slightly Mad Studios Ltd.
Shares in Codemasters were 12% higher at 235.00 pence in London on Friday, shares had closed on Thursday at 210.00 pence.
After the market close on Thursday, Codemasters announced it proposed to buy Slightly Mad in a cash-and-shares deal worth up to USD196 million.
Codemasters will pay an initial USD30 million - about GBP23.3 million - through cash and shares. Of this initial consideration, GBP19.4 million will be settled in cash and the remainder through the issue of 1.8 million shares.
In addition to the initial consideration, a deferred and earn-out consideration of up to USD166 million could also be paid. Any further payments will also be settled in a mixture of cash and shares.
In order to help fund the initial GBP19.4 million cash element, the Southam-based firm said Friday it raised GBP20 million in gross proceeds through the issue of 9.5 million shares at 210 pence per share. The shares are equivalent to around 6.3% of the enlarged capital in the firm.
After admission - expected Tuesday - Codemasters will have 151.3 million shares outstanding.
By Ahren Lester; ahrenlester@alliancenews.com
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