Tenpin operator Ten Entertainment agrees to £287m takeover

Shares in tenpin bowling firm Ten Entertainment Group (LSE: TEG) rocketed over 30% on Wednesday after it agreed to a £287 million takeover bid from Neon Buyer Ltd, a vehicle owned by US private equity firm Trive Capital. Neon Buyer is offering 412.5p per share for the operator, a generous 33% premium to Tuesday’s closing price.

The board of Ten Entertainment said the get-out offer was a good deal for shareholders, given the “uncertainties” facing the UK economy in coming months and rising inflationary pressures limiting growth prospects. The cash bid is expected to complete in the first quarter of 2024, pending shareholder approval.

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Ten Entertainment’s shares have more than doubled year-to-date, with today’s takeover news sending the stock up 65.4% in early trading.