By Ian Walker
Shares of Codemasters Group Holdings PLC rose 19% in early trade Monday after the company said that it agreed to a 945 million-pound ($1.25 billion) cash takeover from Electronic Arts Inc., and has therefore withdrawn its recommendation for an offer from Take-Two Interactive Software Inc.
Under the deal, accepting shareholders of the U.K. videogames developer and publisher will get 604 pence for each share held. The offer price is a 13% premium to Friday's closing price of 534 pence.
Shares in Codemasters at 0845 GMT were up 101.0 pence, or 19%, at 635.0 pence.
"The board of Codemasters firmly believes the company would benefit from EA's knowledge, resources and extensive global scale--both overall and specifically within the racing sector," Chairman Gerhard Florin said.
Take-Two said Monday following the news that it is considering its position in relation to Codemasters and would make a further announcement when appropriate.
On Nov. 10, Codemasters agreed to a GBP759 million takeover offer from Take-Two. Under that deal, accepting shareholders were due to get 120 pence in cash and 0.2834 new Take-Two shares for each Codemasters share held.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
12-14-20 0416ET