(Yicai Global) Jan. 23 -- China's Tencent Holdings has proposed to pay a 27 percent premium to purchase Norway's Funcom which is currently developing an open-world multiplayer survival game based on Frank Herbert's sci-fi novel Dune.
Tencent, which is already Funcom's largest shareholder, would pay NOK17 (USD1.89) apiece, the Netherlands-headquartered firm said in a statement yesterday. That results in a NOK1.33 billion (USD148 million) valuation. The shares [XOSL: FUNCOM] climbed close to the offer price yesterday.
Founded in 1993, Funcom is known for its online games Conan Exiles, Secret World Legends, Age of Conan, and Anarchy Online.
"We are impressed by Funcom's strengths as a developer of open-world multiplayer, action and survival games," said Steven Ma, senior vice president of the Shenzhen-based buyer.
The Chinese gaming giant purchased nearly 29 percent of the target firm's equity last October after acquiring stakes in global game developers such as Supercell, Ubisoft Entertainment, and Epic Games.
"Tencent will provide Funcom with operational leverage and insights from its vast knowledge as the leading company in the game space," said the latter's Chief Executive Rui Casais.
The deal is not expected to result in changes in Funcom's management or staff.
Editor: Emmi Laine