Frontier Developments PLC (FDEV.LN) has entered into a subscription agreement with Tencent Holdings Ltd., an internet and interactive entertainment company based in China, under which Tencent has agreed to make a strategic investment in Frontier.
Frontier, which creates video games said Friday that Tencent has subscribed for 3.4 million newly issued ordinary shares in the company at a 523.2 pence (673.8 cents) each.
Continue Reading Below
Frontier said it intends that the proceeds of GBP17.7 million will augment the company's existing cash resources (GBP12.6 million at end May) and allow it to continue to accelerate its investment in scaling up its operations and growing its number of franchises to build on the success of its transition to self-publishing.
Shares at 0800 GMT up 80 pence, or 15%, at 605 pence, valuing the company at GBP207.1 million.
-Write to Razak Musah Baba at firstname.lastname@example.org; Twitter: @Raztweet
(END) Dow Jones Newswires
July 28, 2017 04:19 ET (08:19 GMT)