CD Projekt denies hostile takeover rumours

November 10, 2016 // 11:02 a.m.

Tags: #acquire #acquisition #cd-projekt #cd-projekt-red #ea #electronic-arts #financial #gogcom #hostile-takeover #takeover

Popular Polish developer CD Projekt has denied claims it may be defending a hostile takeover attempt, following rumours that spread in the wake of a call for an extraordinary shareholders meeting.

Earlier this week CD Projekt, known for the Witcher franchise and its digital distribution platform GOG.com, was at the heart of a rumour-storm stemming from a call for an extraordinary meeting of shareholders (PDF warning) to vote on three primary topics: a share buyback, the merger of the CD Projekt Brands subsidiary in the parent company, and a potential change on the company's operating statute which would add restrictions to the voting rights of all shareholders with a greater than 20 percent share.

These items taken together prompted concerns that the company was fighting a hostile takeover from an outside entity, with names including publishing giant Electronic Arts thrown into the hat as potential aggressors. According to CD Projekt, though, there's no such takeover bid.

'As for the rumour, it emerged after the Board suggested introducing a voting cap during the upcoming shareholder meeting. However, the proposal is not a reaction to any current events affecting CD Projekt,' the company claimed in a statement provided to WCCF Tech. 'Rather, it is meant as insurance against future hypothetical scenarios which may never materialise. We wish to safeguard the interests of minority shareholders in a hypothetical case where a major shareholder emerges professing a business and strategic vision which conflicts with ours.'
Discuss this in the forums

QUICK COMMENT

SUBSCRIBE TO OUR NEWSLETTER

WEEK IN REVIEW

TOP STORIES

SUGGESTED FOR YOU