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SCi Entertainment is a more likely play for private equity than a trade player, said a source familiar with the company. The UK-listed computer-games developer on Tuesday announced an approach from an undisclosed bidder.
Names linked to SCi include Time Warner, which paid 500p a share for a 10% stake in late 2006; France’s Ubisoft, which had pursued Eidos in 2005 before SCi bought it; and Robert Tchenguiz, the Iranian billionaire who bought a 20% stake in SCi last year.
Robert Tchenguiz still owns 20% of SCi but is not looking to bid for SCi, it is understood.
A Ubisoft source said: “We are not in discussion with SCi Entertainment any more than we are with any other company in the industry.” The source familiar with SCi also noted that Ubisoft was unlikely to bid for SCi as, during its long pursuit of Eidos, it offered approximately one-sixth of what SCi is now currently worth. However, an industry source had heard that Socgen was mandated to provide Ubisoft with the debt for an SCi deal.
The source said Time Warner could again be the possible bidder and noted the company’s heightened interest in SCi. However, he said he would be surprised if Time Warner took such a huge gamble. Time Warner declined comment.
This source also said he thought Vivendi would have no interest. Vivendi would not comment on the situation.
An SCi spokesperson declined comment.
A second source close to the situation said SCi should have interest from a number of suitors now that an approach has been made. The first source thought SCi could be a possible take private candidate, as the stock was cheap compared with industry peer Take 2 Games. SCi’s current trading price is GBP 3.9 a share, Take Two is USD 16.05 (GBP 7.95) a share.
SCi Entertainment shares were trading at 399p on Thursday translating into a market cap of GBP 345m.
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