Brief: Gaming Innovation Divests Its B2C Vertical To Betsson Group

Gentoo Media

14/02/2020 07:39

Feb 14 (Reuters) - Gaming Innovation Group Inc  GAMIG.OL :
    * GAMING INNOVATION GROUP DIVESTING ITS B2C VERTICAL TO
BETSSON
GROUP
    * SIGNS A SHARE PURCHASE AGREEMENT (SPA) WITH BETSSON GROUP
(BETSSON)
    * BETSSON WILL, THROUGH THIS AGREEMENT, BECOME A LONG TERM
PARTNER
OF GIG, GENERATING REVENUES TO GIG'S PLATFORM SERVICES
    * ON DAY OF CLOSING, BETSSON WILL PAY EUR31 MILLION,
CONSISTING OF
A EUR22.3 MILLION CASH PAYMENT FOR ACQUISITION, PLUS A PREPAID
PLATFORM FEE OF EUR8.7 MILLION
    * GIG WILL USE PROCEEDS TO REPAY COMPANY'S SEK300 MILLION
2017 -
2020 BOND.
    * WITH DIVESTMENT OF B2C VERTICAL, FULL YEAR 2020 REVENUES
ARE
EXPECTED IN RANGE OF EUR70 - 75 MILLION
    * WITH DIVESTMENT OF B2C VERTICAL, FULL YEAR 2020 EBITDA
EXPECTED
IN RANGE OF EUR14 - 17 MILLION, INCLUDING, FOR COMPARISON, B2C
AS CONTINUED OPERATIONS UNTIL COMPLETION OF TRANSACTION.
    * EXPECTED COMPLETION OF TRANSACTION IS MID APRIL 2020
    * GIG IS IN DIALOGUE WITH ITS LARGEST BONDHOLDERS AND WILL
SEEK
CONSENT FROM ITS BONDHOLDERS TO EXTEND REPAYMENT OF 2017 - 2020
BOND FROM MATURITY DATE IN MARCH 2020 UNTIL 22 APRIL 2020
    * DIVESTMENT OF B2C VERTICAL WILL LEAD TO A WRITE-DOWN OF
REMAINING BOOK VALUE OF B2C ASSETS AND RELATED GOODWILL, AN
IMPAIRMENT WILL BE RECOGNISED IN Q4 2019.
    * BASED ON EXPECTED PLATFORM FEES, TOTAL VALUE OF
TRANSACTION IS
ESTIMATED AT APPROXIMATELY EUR50 MILLION.

Source text for Eikon:  ID:nObilQqCWa 
Further company coverage:  GAMIG.OL 

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