South Korea's Krafton to acquire 10% of Polish video games maker PCF Group

KRAFTON

29/03/2023 08:28

March 29 (Reuters) - Polish video games maker PCF Group
 PCF1.WA  said late on Tuesday Krafton Inc  259960.KS , a South
Korean company backed by China's Tencent  0700.HK , will acquire
a 10% stake in the company, sending its shares nearly 10%
higher.
    Under the investment agreement signed by PCF Group and its
biggest shareholder and CEO Sebastian Wojciechowski, Krafton
will subscribe for newly issued shares in PCF Group at an issue
price of 40.20 zlotys a share, a 9% premium to Tuesday's close.
    PCF Group shares jumped 9.9% to 40.4 zlotys at 0716 GMT.
    "For PCF, attracting an investor in the form of Krafton
(creator of PUBG, among others) may positively translate into
the quality and marketing of the games under development," Piotr
Bogusz at Erste Group wrote in a note.
    Wojciechowski holds a 49.76% stake in the maker of
high-budget shooter games, such as "Painkiller", "Gears of War:
Judgment" or "Outriders".
    The Polish company plans to issue up to 5,853,941 shares to
raise up to 295 million zlotys ($68.27 million) to implement its
new strategy as it moves to self-publishing of games.
    Bogusz said that while the price may vary depending on the
investor, the 40.20 zlotys per share agreed with Krafton "may be
a certain determinant for other investors". 
    If the maximum shares are issued, Krafton will take up
shares worth 144.5 million zlotys and will be the main investor
participating in the issue, Bogusz said.
($1 = 4.3212 zlotys)

 (Reporting by Anna Pruchnicka;Editing by Elaine Hardcastle)
 ((anna.pruchnicka@thomsonreuters.com; +48 58 769 65 14;))