Hargreaves Lansdown

Tencent picks up stake in Sumo Group

Fri 15 November 2019 16:10 | A A A

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(Sharecast News) - Independent video games developer Sumo Group said on Friday that Tencent Holdings, through a direct wholly-owned subsidiary, alongside Perwyn Bidco UK, have notified ot that they have entered into an agreement for the acquisition by Tencent from Perwyn of 15 million shares in Sumo.

The AIM-traded firm described Tencent as "one of the world's leading" internet companies, and said that following the acquisition of the shares from Perwyn, Tencent would hold a 9.96% interest in the Company.

It said the shares were being acquired by Tencent from Perwyn, which it described as an "evergreen, family-funded" private equity business and investor in Sumo Group since September 2016.

Following the sale of the shares, Perwyn would retain a 17.38% interest in the firm.

"We are delighted that Tencent have chosen to acquire a shareholding in the company, and we look forward to working with Tencent to explore co-development opportunities," said Sumo Group chief executive officer Carl Cavers.

"When Perwyn invested in Sumo Digital in September 2016 we were a private company with annual revenue of around £24m and operated from three studios in two countries.

"We are now a public company and, following the recent announcement of our new studio in Warrington in the north west of England, now have 10 studios in three countries and reported revenue of more than £38m for the year ended 31 December 2018."

Steven Ma, head of Tencent Games, added that his company was "glad" to invest in Sumo Group, which he described as a "leading independent co-development studio".

"We look forward to supporting Sumo's growth and exploring collaborations with the company to bring more interactive entertainment experiences to global audiences."

At 1604 GMT, shares in Sumo Group were up 7.95% at 166.25p.

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