Gameforge Berlin AG
Frogster Interactive Pictures AG: Gameforge makes takeover offer to Frogster shareholders / Frogster’s presence at GamesCom and Outlook 2011
Frogster Interactive Pictures AG / Mergers & Acquisitions/Forecast 16.08.2010 15:42 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Berlin, 16.08.2010: Gameforge AG, international publisher of online games based in Karlsruhe, has offered a takeover via a subsidiary to the shareholders of Frogster Interactive Pictures AG, international publisher of massively multiplayer online games with headquarters in Berlin and subsidiaries in Berlin, San Francisco and Seoul for a share price of 25 Euro. Hence, the bid lies slightly below the current Frogster share price of lastly 25.90 Euro (16.08.2010, 12pm). According to the publication of Gameforge, the offer is valid until September 20th 2010, can however be accepted by the Frogster shareholders until October 8th 2010. Should Gameforge rise the amount of 25 Euro, the offer would run until October 4th 2010, could however be accepted within two additional weeks. Two weeks ago, Gameforge had announced to be already in the possession of 60% of Frogster. Except for common non-disclosure agreements, no other agreements or arrangements exist between Gameforge and Frogster. Whether Gameforge, as quoted in the takeover offer, actually pursues the target of acquiring all Frogster shares and if they - upon reaching 95% stake - intend to conduct a squeeze-out and whether the takeover bid generally will have to be regarded as friendly or hostile, depends on the decision making of Gameforge, which are not transparent to Frogster. Gameforge has in any case expressed the aim to maintain Frogster an independent company with the existing management and team at the current locations, its own culture and its successful brands, regardless of the shareholder structure. In the conviction of the management of Frogster, the independence of the company in its business relations with developers, press and customers as well as concerning its management and team is an important precondition of the future success. Generally the Frogster management does not give any recommendation to buy or sell the share at a particular price, not on the occasion of the takeover bid either, but feels obliged to the shareholders to make the following statements: Since the pool shareholders' decision to sell its almost 37% in Frogster at a share price of 25 Euro, Frogster has achieved license deal closings, which significantly increase the profit perspectives from 2011 onwards in the opinion of the management. The analysts watching the Frogster share recommend not to accept the takeover offer for a price of 25 Euro (see reference at www.frogster.de). The consensus for their share price targets currently amounts to 36.50 Euro. Neither does the management itself have an intention to accept the takeover offer concerning their own shares at present, nor do they plan to leave the company. Currently, according to knowledge of the company, a good 25% of Frogster is free float and just under 15% is owned by the management. Update on current revenues and guidance 2010 As expected the monthly revenue in the heat record month of July 2010 was down and turned out to be about 400k Euro below the present monthly revenue record in June 2010 of almost 2.3m Euro according to preliminary projections. Due to seasonality Frogster expects a further, slight decrease for August and for the same reasons noticeably rising monthly revenues thereafter. The management continues to hold on to its guidance for a revenue target in 2010 of at least 25m Euro, but will probably slightly decrease its guidance of the net profit target in 2010 of 1.47 Euro per share, the amount being adjusted by 13 Cent for the dilution deriving from the capital raise, for the intention of investments in the pre-launch marketing for 'Mythos' and 'Tera' which yet again represent incremental revenue opportunities in 2011. According to preliminary estimates, the company that has experienced strong growth from month to month, has earned around 40 to 50 Cent already in the first half of 2010 despite the extraordinary negative impact of the shut-down of the development studio in Korea. The half year interim report shall be released at the beginning of September. Presentation of the product pipeline 2011 at the GamesCom This week, Frogster will for the first time present its recently announced and 2011 to be released MMO Game titles 'Mythos' and 'Tera' at the leading international computer games show GamesCom in Cologne. With their renowned Asian developers and production budgets in the two-digit millions range, both virtual worlds belong to the communities' highest anticipated MMO Games worldwide. The management is convinced that herewith and with its 'Project X' from the 'Runes of Magic' hit maker Runewaker, Frogster has got an outstanding pipeline of top quality MMO Games among the European publishers. Accordingly, Frogster enjoys great attention from the games press and has already made over 150 appointments at the show with print-, online- and TV magazines. Outlook 2011 With the announced products Frogster expects further acceleration of its persistant, strong and profitable expansion for 2011. The analysts' consensus currently amounts to 43m Euro revenue forecast 2011 and 3.35 Euro net profit forecast per share. Assuming a similar development as both of Frogster's well-known online games competitors have taken during the last two years coming from a similar revenue size as Frogster's current one, the growth ought to take an even faster course. In the management's view Frogster's product pipeline supports this assumption. Provided that the cooperation between Gameforge and Frogster intended by both companies runs constructively, it should also contribute significantly to the results and values of both companies latest from 2011 on. Frogster Interactive Pictures AG, Tel. +49 (0)30-28 47 01-0 16.08.2010 Ad hoc announcement, Financial News and Press Release distributed by DGAP. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: Frogster Interactive Pictures AG Hardenbergstr. 9A 10623 Berlin Deutschland Phone: 030 / 284701-10 Fax: 030 / 284701-11 E-mail: frogster@ir-services.de Internet: http://www.frogster-ip.de/ ISIN: DE000A0F47J1 WKN: A0F47J Indices: Entry Standard Performance-Index Listed: Freiverkehr in München, Düsseldorf, Berlin, Stuttgart; Open Market (Entry Standard) in Frankfurt End of News DGAP News-Service ---------------------------------------------------------------------------
Latest News
Latest Reports
Upcoming Events
No Events found
Webcasts
No Webcasts found