Monday 19 July 2021 9:06 am

Tencent pushes British gaming group Sumo to hit $1.27bn valuation in bid to buy

Chinese tech giant Tencent has pushed the valuation of video game group Sumo to hit $1.27bn today in its bid to buy the British firm.

Sumo’s shareholders will gain 513p per share, Tencent said, at a 43 per cent premium to Sumo’s last closing price of 358p.

The British video game group, behind games like Little Big Planet, has seen its share price swell since listing on London’s junior market AIM in 2017 at just 100p per share.

Tencent, as the firm’s second-largest stakeholder, already has an 8.75 per cent stake in Sumo.

“The board of Sumo firmly believes the business will benefit from Tencent’s broad videogaming eco-system, proven industry expertise and its strategic resources,” non-executive chairman at Sumo, Ian Livingstone, said.