Companies roundup: GSK & Vodafone

GSK (GSK) has signed a new licensing agreement with CureVac (CVAC) that will see it take control over the development of the German group’s mRNA vaccines for flu, avian flu and Covid-19. The two companies have been working together since 2020, but the revised deal will see GSK assume full responsibility for commercialising the three trial-stage jabs.

CureVac will receive an upfront payment of €400mn (£339mn) and up to €1.05bn in additional development, regulatory and sales milestones. These payments represent a much needed cash injection for the group, which is cutting one third of its workforce amid an ongoing struggle to bring products to market. 

Shares in GSK, which have struggled following an unfavourable ruling in the Zantac litigation last month, were essentially unmoved by today’s deal announcement. JJ

Read more: Should investors learn to live with GSK?

Vodafone announces network sharing deal with Virgin

Vodafone (VOD) has extended its network sharing agreement with Virgin Media O2 for another decade, as it attempts to get its merger with Three UK over the line.

Vodafone is in the middle of a takeover of Three UK but is still waiting for regulatory approval. If the deal goes through, Virgin Media would also get access to the enlarged services of the combined Vodafone and Three UK network.

As part of the merger deal, Vodafone has committed to invest £11bn in its UK infrastructure. Vodafone has therefore made the point that Virgin Media O2 customers would also receive the benefits of this investment, as it attempts to convince the Competition and Markets Authority that its merger with Three will be good for UK consumers.

“This will not only benefit the companies' respective customers but also businesses, which includes MVNOs who make use of networks via wholesale partnerships,” wrote Vodafone in the announcement. AS

Read more: Understanding Vodafone’s tricky investment case

Keywords backs final EQT offer

After announcing some delays to projects last month, video games services company Keywords Studios (KWS) has backed a lower offer from private equity giant EQT, at an enterprise value of £2.1bn. The Keywords board had previously been “minded to recommend” a buyout at 2,550p a share, but this accepted final offer will hand shareholders 2,450p a share. EQT has been publicly chasing a deal for Keywords since May, bringing its share price back up from lows of just 1,140p, with the valuation hurt by concerns its back-end business would be hit by AI and weaker games sales. 

“The Keywords Studios directors are … mindful of the near-term challenges in the broader video games and entertainment industries that have impacted recent growth, as well as other longer-term uncertainties, many of which are beyond Keywords Studios' control,” the company said. EQT will need 75 per cent support from shareholders for the deal to go ahead. AH