Sumo Share Price
The Sumo share price (LON:SUMO) is soaring on Monday as news emerged that Tencent, the Chinese gaming giant, is set to takeover the British video game developer. The Sumo Group share price is up by 38.13% on Monday and now stands at 494.50p per share. It is a continuation of a strong performance throughout the past 12 months for the growth stock, which is up by 172% over the time period.
Tencent Takeover
Tencent confirmed on Monday that it has agreed to acquire Sumo, the AIM-listed company, for £919m. The Chinese company tabled a 513p per share offer for Sumo, a 43% premium to the firm’s closing price on Friday.
The acquisition is an addition to Tencent’s present 8.75% holding in Sumo. Tencent is the largest gaming company in the world and already owns stakes in Rot Games and Epic Games.
“Chinese deals may imply a higher regulatory risk, but we see no likely resistance or counterbid,” analysts at Jefferies Financial Grou said in a note on Monday, as reported by Bloomberg.
“Tencent intends to bring its expertise and resources to accelerate the growth of Sumo both in the U.K. and abroad, supporting Sumo in the market for top-tier creative talent, and the U.K. as a hub for game innovation,” said James Mitchell, chief strategy officer at Tencent.
“We believe the proposed transaction benefits all stakeholders, and delivers compelling value for Sumo shareholders, while enhancing Sumo’s capabilities for the future.”
