DoubleU Games to Launch Tender Offer for Remaining Stake in DoubleDown Interactive

DoubleU Games will launch a tender offer for the remaining shares of its subsidiary DoubleDown Interactive.

According to DoubleU Games on November 10, the tender offer covers all 16,329,620 American depositary shares (ADSs) of DoubleDown Interactive not held by DoubleU Games, at $16.25 per ADS. The transaction is valued at up to approximately $265.36 million (approximately KRW 356.1 billion). DoubleU Games currently holds a 67.05% stake in DoubleDown Interactive.

The tender offer period will run from November 10 to December 11, exceeding the minimum period of 20 business days required under the U.S. Securities Exchange Act. Including its existing stake, DoubleU Games aims to secure at least 95.0% of the total issued shares. If the minimum tender condition is not met, the tender offer will not be completed, and the company will not purchase any tendered ADSs. However, the two companies may agree to lower the minimum tender condition, but not below 90.0%.

The acquisition will be funded with cash held by DoubleU Games and a short-term loan of up to KRW 300 billion from Korea Investment & Securities. The company said this amount is a credit facility limit, and the loan will be drawn only if the tender offer is completed and the acquisition payment is made; no borrowing has occurred to date.

A DoubleU Games official said, "As of the end of the first half of this year, consolidated cash and cash equivalents amounted to approximately KRW 1 trillion, of which DoubleDown Interactive held approximately KRW 850 billion. We expect to have greater flexibility in using funds across the group once it becomes a wholly owned subsidiary."

This content was produced with the assistance of AI translation services.