SCi Reject Third-Party Offer Proposal News
Chris Leyton
23/04/2008
UK publisher rejects the latest proposal from an unnamed third-party, claiming it would risk the strategic plan...
Amidst intense speculation that SCi Entertainment would be the likely subject of an impending acquisition, the UK publisher today confirmed that it has received an indicative proposal, but has proposed that the offer does not represent sufficient value.
Although the possible offer represents a significant premium to the publisher's share price, it's suggested that the proposal offered mainly equity but that the third-party would also have to assume responsibility for SCi's funding requirements. SCi are reportedly
Explaining the reasons why SCi's board deems the offer undervalued, SCi maintains that, given the publisher's significant short- to middle-term funding requirements, such an uncertain proposal would risk the publisher's proposed issuance of new equity to fund the execution of its revised strategic plan.
Earlier in the year SCi and Eidos confirmed the cancellation of 14 different projects as a result of the strategic plan, signalling its intent to focus on key brands from its Montreal based studio, but suggesting that the additional funding that's needed is by no means a certainty.