Keywords Studios (KWS) Bid
KWS have been bid for at 2550p per share from the private equity group EQT. This is welcome news for investors who acted on the recommendation last Wednesday at 1327p.
The company statement can be found here.
The market price is 2300p, which is slightly above the consensus forecast at 2250p but 10% below the bid. Assuming this deal is accepted, it will take some time to complete, and so some of the discount is reflected by lost interest (time value). The yield is a mere 0.11%, so that is irrelevant. The rest of the discount reflects the risk the deal does not go through. I have no insight on this.
I will be taking profits in the Venture Portfolio because the risk/reward is no longer appealing.
Action
Sell Keywords Studios (KWS).
Please let me know your thoughts by emailing me at charlie.morris@bytetree.com or tweeting me @AtlasPulse.
Many thanks,
Charlie Morris
Editor, Venture
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