DoubleU Games launches $16.25 cash offer for remaining DoubleDown ADS
Key takeaways
- Offer price: $16.25 per DoubleDown American Depositary Share (ADS)
- DoubleU Games currently owns ~67.05% of DoubleDown’s common shares
- Bridge loan facility up to KRW300 billion (~$224 million); tender target 95% (can be 90%)
DoubleU Games has launched a cash tender offer to buy the remaining shares of DoubleDown Interactive it does not already own, offering $16.25 per American Depositary Share (ADS). The South Korean company currently holds roughly 67.05% of DoubleDown’s outstanding common shares. DoubleDown’s special committee of independent directors unanimously found the agreement fair and recommended the company’s board approve the deal, and the board has urged unaffiliated shareholders to accept the offer.
The tender requires DoubleU Games to own at least 95% of DoubleDown’s outstanding shares after the purchase, but that threshold may be lowered to 90% with DoubleDown’s approval if reaching 95% looks unlikely. More than 50% of ADSs held by unaffiliated investors must be tendered for the offer to meet its conditions. The new proposal replaces an earlier offer after discussions between DoubleU and the special committee, and if the tender succeeds DoubleU plans to acquire any remaining shares through a follow-up transaction under South Korea’s Commercial Act at the same $16.25-per-ADS price.
DoubleU Games intends to fund the purchase with cash on hand plus a bridge loan facility of up to KRW300 billion (about $224 million). Completion of the transaction still depends on the offer meeting its stated conditions, and the companies note there is no guarantee the acquisition will close. The announcement names concrete financing and statutory steps rather than timelines: the bridge loan cap and the post-tender second-step under Korean law are the clearest execution details provided.
Why it matters
Takeaway: buyers and shareholders will be watching the tender thresholds — 95% (or 90% with approval) and the requirement that more than half of unaffiliated ADSs tender — since those conditions determine whether DoubleU moves to the statutory second-step purchase at $16.25 per ADS.
Original source
PocketGamer.biz
