Brief: Media And Games Invest To Acquire Kingsisle

Mgi Media and Games Invest Se

18/01/2021 06:46

Jan 18 (Reuters) - MEDIA AND GAMES INVEST PLC  M8G.DE :
    * MEDIA AND GAMES INVEST SIGNS AGREEMENT TO ACQUIRE THE
AWARD-WINNING US GAME DEVELOPER KINGSISLE ADDING ABOUT 60% GROUP
EBITDA. TO ENABLE THE TRANSACTION A EUR 25 MILLION CAPITAL
INCREASE WAS COMMITTED BY OAKTREE CAPITAL, HOLDING ABOUT 9% OF
THE MGI SHARES
    * FIXED PURCHASE PRICE IS USD 126 MILLION PLUS UP TO USD 84
MILLION IN EARN-OUTS WHICH REPRESENTS AN EV/EBITDA MULTIPLE OF
6.0X FOR FIXED COMPONENT
    * CLOSING OF TRANSACTION IS EXPECTED BEFORE END OF JANUARY
2021.
    * OAKTREE CAPITAL BECOMES AN ABOUT 9% MINORITY ANCHOR
INVESTOR IN
MGI
    * WITH INVESTMENT HORIZON OF 3 TO 5 YEARS, PARTICIPATING IN
TRANSACTION THROUGH EUR 25 MILLION CAPITAL INCREASE
    * AS PART OF TRANSACTION, MGI HAS AGREED TO ISSUE 11,676,241
NEW
ORDINARY MGI SHARES AT A PRICE OF EUR 2.14 PER SHARE,
REPRESENTING A 4% DISCOUNT TO AVERAGE CLOSING SHARE PRICE OVER
LAST TWENTY TRADING DAYS ON XETRA
    * NEW SHARES WILL BE SUBSCRIBED BY FUNDS ADVISED BY OAKTREE
CAPITAL MANAGEMENT AND WILL ISSUE PROCEEDS OF EUR 25 MILLION

Source text for Eikon:  ID:nEQ5b7wsva 
Further company coverage:  M8G.DE 

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