Tencent has bought the UK game developer Sumo. The deal is an all cash buyout. Sumo is known for Hitman, Sonic, and Little Big Planet franchises.

Sumo Group shares rose 40.5 per cent on the news, to reach the bid price of 513p per share.

Tencent was already an investor in Sumo, with an 8.75 per cent stake. Ahead of the announcement it sounded out other shareholders about the buy and won the approval of stakeholders who together represent 27% of scrip.