UG Games shares rise on the back of South Korea’s double U.S. acquisition
Investors shrugged off concerns about high bids and cheered on the news of Korean social casino game publisher Doubles. In anticipation of synergy between the two companies, UGames Co. has decided to acquire a U.S. social casino subsidiary of International Game Technology (IGT), a global leader in game system technology. UG Games, listed on Double’s stock KOSDAQ market, hit a 52-week high of 62,200 won in one day on Tuesday after the news broke. Shares closed at 56,500 won on Wednesday, up 7.01 percent from the previous trading day’s close of 52,800 won. Stock prices began to rebound Tuesday after the South Korean company officially announced an agreement to acquire a full stake in IGT’s social casino subsidiary Double-Down Interactive LLC for 942.6 billion won ($82.68 billion). The deal valuation, which announces the largest overseas acquisition of domestic game publishers, initially raised concerns about how Korean companies with less than 400 billion won in cashable assets wil...