Shares of British video game developer Codemasters have rocketed, after it announced a takeover offer from American video game holding company Take-Two Interactive.
Take-Two offered to buy all of Codemasters at a price of 485p per share, made up of 120p in cash and 365p in the American firm’s shares. Codemasters’ board is recommending unanimously its shareholders accept the offer. The offer would value the company at £739m.
Codemasters - known for its Formula One games for the Playstation 4 - shot up more than 8pc to hit its highest share price since listing in June 2018, ending at 470p, up 37.5p.
Within the sector, FTSE 350-listed Games Workshop also reached an all-time high, adding 610p to £114.60. The fantasy miniatures retailer upped its previous profit forecast from September, on the back of better-than-expected trading. It now estimates pre-tax profit for the six months to Nov 29 to be at least £80m, marking a 36.5pc boost compared to £58.6m in 2019.
British grocer Tesco’s rise faltered just after midday when it announced the disposal of its Thai business to Bangkok-based conglomerate CP Group. Still, it added 5.3p to 217.8p by close.
Proceeds of the sale will bring £8bn to Tesco’s, according to a note by Jefferies’ analysts, with £5bn used for a special dividend. It expects a distribution of 51p per share to take place before year end.
British foods manufacturer Premier Foods confirmed it has sold off Hovis Bread for £37m. It has had a 49pc minority interest in Hovis since April 2014, alongside majority shareholder Gores Group.
Premier Foods rose 2.4p to 106p, its highest price since October 2013.
The FTSE 100 see-sawed through the day, stalling a straight week of rallies on the back of the US election, ending up just 0.07pc.
A top blue-chip drag on the market was engineering software firm Aveva which fell 108p to £40.54. It intends to raise £2.84bn through a rights issue to partly fund its takeover of Softbank-backed US peer OSlsoft.
Under the seven-for-nine rights issue, existing Aveva shareholders can buy seven new shares for every nine they currently own at £22.55 each. Aveva said it will be offering 125.7m new shares in the rights issue.
Insurer RSA also weighed on the blue chip index, slipping back 21p to 649p after its late surge on Thursday afternoon when news emerged of takeover talks focused around a potential 685p per share cash offer.
Fellow insurer Beazley gained 5.8p to 311p on the FTSE 250, though still remains far below prices seen at the beginning of the year. On Thursday the company confirmed gross premiums for the nine month period increased by 16pc to $2.53bn, ahead of expectations. There was a 14pc increase in premiums for renewable business.
The firm set aside $80m for coronavirus provisions in the third quarter and maintained its guidance of an annual $340m in provisions for losses.
AIM-listed Beowulf Mining shed 0.6p to 4.9p. The Nordic miner is looking to raise more than £7m, though an open offer, to develop metal, graphite and porphyry projects in Sweden, Finland and Kosovo.