Octopus Investments, the second-largest shareholder of high-profile video game services provider Keywords Studios PLC (AIM:KWS, OTC:KYYWF), has called the 2,450p takeover bid from EQT an “opportunistic” move by the Swedish private equity firm.
EQT and Keywords agreed to the £2.1 billion bid last week but while it represents a 67% premium to the share price when the initial approach was made public in May, Octopus is unimpressed by this valuation.
In comments published by The Telegraph, senior fund manager Chris McVey said: “We are extremely disappointed that the board has recommended the 2,450p cash offer which we consider to be opportunistic and in no way reflective of the true value that has been created, nor of the prospects for significant future growth.”
Keyword holds lucrative contracts with some of the studios in the world, including Fortnite developer Epic Games, for which it provides complex localisation services.
Regardless of Octopus’ objections, the deal appears to be a goer.
Don Robert, Keywords chair, said last week: “On balance, the board believes that this offer represents a good opportunity for Keywords Studios shareholders to realise value for their investment in cash upfront at a significant premium to the undisturbed share price.”