Bain, KKR Among Bidders for Hong Kong Gaming Firm Leyou

(Bloomberg) -- Bain Capital, CVC Capital Partners and KKR & Co. are among bidders for Hong Kong-based game developer Leyou Technologies Holdings Ltd., according to people familiar with the matter.The buyout firms are selected to participate in the second round of bids, the people said, asking not to be identified because the matter is private. The firms are discussing potential financing options with investment banks, the people said. Leyou also attracted interests from other gaming companies, they said.Leyou said in September that it was holding preliminary talks with potential investors on possible transactions, which may lead to a public takeover. It hired Moelis & Co. as financial adviser. Shares of Leyou pared losses to 1.5% as of 1:53 p.m. Hong Kong time, giving it a market value of about HK$7.95 billion ($1 billion). The stock fell as much as 3.8% earlier on Tuesday.Leyou was listed in Hong Kong in 2011 with products including free shooting games Warframe and Dirty Bomb. It’s also working with Amazon.com Inc. to co-produce a video game based on the popular fantasy series “The Lord of the Rings.” Other upcoming games are Civilization online and Transformers.Considerations are still ongoing, no final decision has been made and the companies could still decide against pursuing a transaction, the people said. Representatives for Bain, CVC and KKR declined to comment, while a representative for Leyou didn’t immediately respond to requests for comment.In the latest update on Oct. 16, Leyou said it has received a number of indications of interest from potential investors for the company or a substantial part of its business. These potential investors are conducting due diligence and there’s no agreement made for any transaction, it said.(Updates Leyou’s share price in third paragraph)To contact the reporters on this story: Manuel Baigorri in Hong Kong at [email protected];Cathy Chan in Hong Kong at [email protected] contact the editors responsible for this story: Fion Li at [email protected], Ville HeiskanenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P. Read More...

(Bloomberg) — Bain Capital, CVC Capital Partners and KKR & Co. are among bidders for Hong Kong-based game developer Leyou Technologies Holdings Ltd., according to people familiar with the matter.

The buyout firms are selected to participate in the second round of bids, the people said, asking not to be identified because the matter is private. The firms are discussing potential financing options with investment banks, the people said. Leyou also attracted interests from other gaming companies, they said.

Leyou said in September that it was holding preliminary talks with potential investors on possible transactions, which may lead to a public takeover. It hired Moelis & Co. as financial adviser. Shares of Leyou pared losses to 1.5% as of 1:53 p.m. Hong Kong time, giving it a market value of about HK$7.95 billion ($1 billion). The stock fell as much as 3.8% earlier on Tuesday.

Leyou was listed in Hong Kong in 2011 with products including free shooting games Warframe and Dirty Bomb. It’s also working with Amazon.com Inc. to co-produce a video game based on the popular fantasy series “The Lord of the Rings.” Other upcoming games are Civilization online and Transformers.

Considerations are still ongoing, no final decision has been made and the companies could still decide against pursuing a transaction, the people said. Representatives for Bain, CVC and KKR declined to comment, while a representative for Leyou didn’t immediately respond to requests for comment.

In the latest update on Oct. 16, Leyou said it has received a number of indications of interest from potential investors for the company or a substantial part of its business. These potential investors are conducting due diligence and there’s no agreement made for any transaction, it said.

(Updates Leyou’s share price in third paragraph)

To contact the reporters on this story: Manuel Baigorri in Hong Kong at [email protected];Cathy Chan in Hong Kong at [email protected]

To contact the editors responsible for this story: Fion Li at [email protected], Ville Heiskanen

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