The following stocks are the leading risers and fallers among London Main Market small-caps on Wednesday.
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SMALL-CAP - WINNERS
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Keywords Studios PLC, up 2.8% at 2,382.00 pence, 12-month range 1,101.00p-2,500.00p. The provider of technical and creative services for video game production accepts a takeover bid from private equity firm EQT Group. The offer places a valuation on Keywords of £2.1 billion on a fully-diluted basis and implies an enterprise value of £2.2 billion. The Keywords’ board ‘unanimously’ backs the takeover terms. Keywords Chair Don Robert says the firm was mindful of the ‘near-term challenges’ in the broader video games and entertainment industries, as well as other ‘longer-term uncertainties’, which have caused volatile returns for Keywords Studios’ shareholders over the past fifteen months. ‘On balance, the board believes that this offer represents a good opportunity for Keywords Studios shareholders to realise value for their investment in cash upfront at a significant premium to the undisturbed share price,’ Robert continues. ‘We therefore unanimously recommend the offer to our shareholders.’
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SMALL-CAP - LOSERS
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Topps Tiles PLC, down 4.2% at 39.00p, 12-month range 38.00p-57.80p. The tile retailer announces a trading update for the 39-week period ended June 29. Total group sales in the third quarter were 6.9% lower year-on-year, and in the 39-week period, sales were 6.2% lower than the prior year. Market conditions have remained challenging overall, with subdued demand in the domestic Repair, Maintenance and Improvement sector, especially for bigger ticket projects, Topps says. It adds: ‘Positive macroeconomic data on inflation, real wage growth, improving consumer confidence and increased activity in the housing market provides some confidence in a cyclical recovery, and the group is well-positioned to benefit from this due to its growing market share, leading brands, specialist expertise and world-class service, underpinned by its strong balance sheet. However, with this recovery yet to feed through into our end markets, the group is progressing the self-help opportunities described in the interim results statement as part of its ’Mission 365’ goal.’
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