South Korean game company DoubleU Games has agreed to launch a cash tender offer to acquire the remaining shares of DoubleDown Interactive that it does not already own.

The company is offering $16.25 in cash for each American Depositary Share (ADS). It currently owns approximately 67.05% of DoubleDown’s outstanding common shares. 

The new offer replaces an earlier proposal following discussions with a special committee made up of independent and disinterested DoubleDown directors.

The special committee unanimously determined that the agreement was fair and in the best interests of DoubleDown and its shareholders, recommending that the company's board approve the transaction.

The company’s board also approved the deal and recommended that shareholders outside DoubleU Games’ ownership accept the offer.

The tender offer requires DoubleU Games to own at least 95% of DoubleDown’s outstanding shares after the purchase. This threshold can be reduced to 90% with DoubleDown’s approval if the higher target is unlikely to be met. More than 50% of ADSs held by unaffiliated investors must also be tendered.

If the offer succeeds, DoubleU Games will acquire any remaining shares through a second transaction under South Korea’s Commercial Act, at the same price.

DoubleU Games plans to fund the deal using cash on hand and a bridge loan facility of up to KRW300 billion ($224 million). Completion remains subject to the offer conditions, and there is no guarantee the acquisition will go ahead.

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