The Tap Issue of EUR 40m was successfully placed yesterday after the announcement on Monday. The issue was heavily oversubscribed and issued at a price of 100.75% of par.
With a strong line-up of potential M&A cases MGI has decided to build a war chest via conducting a Tap Issue of its bond. After a good start to the year with strong organic activity and the acquisitions of media company LKQD and games company KingsIsle, the management expects to also be able to close further M&A transactions in its core business fields, games and media. Currently there are several companies on MGI's short list, each with substantial revenue and EBITDA potential.
Operationally, MGI had a strong start into the year. While both the Games segment, including the new KingsIsle games Wizard101 and Pirate101, as well as the Media segment are developing very well in Q1 2021, the company also has a well filled pipeline of projects and activities for further strong organic growth in the coming months and thereafter. The launch of Trove in Korea was announced earlier this month and MGI has planned several further launches within the next months such as Atlas Rogues -currently in Early Access-, Trove Switch and other promising projects in addition to updates for the existing games in the portfolio. The media segment also had a good start into 2021 and is adding lots of new advertisers as well as publishers to its platforms. Moreover, the integrations of the acquired media companies are moving forward which we expect to result in an increase of the EBITDA margin. Furthermore, the media unit has various promising organic growth projects in the pipeline, including a self-developed solution in response to the exclusion of identifiers, such as in the case of Apple and IDFA.
The Tap issue yesterday was very well received and heavily oversubscribed generating strong interest from Swedish as well as European investors. The tap issue was priced at 100.75% above par. After the Tap Issue Media and Games Invest has reached the full framework (EUR 120 million) agreed for this bond. The additional bonds will be listed under the same ISIN, SE0015194527, on Nasdaq Stockholm and Frankfurt Stock Exchange Open Market. The bond issue enables MGI to do further M&A and closes the announcement on February 18, 2021, to evaluate potential further equity and non-equity financing options.
“The interest in Media and Games Invest plc from Nordic and European bond investors has continued to be strong since the listing of our bond on Nasdaq Stockholm in November last year. I am pleased that the bonds of this Tap Issue were subscribed for by old and new institutional investors. The Board of Directors has carefully evaluated both non-equity and equity financing options and decided to tap the existing bond within the agreed framework. The proceeds of the tap issue will be used for further growth, with a well filled pipeline of acquisitions where we expect to close a minimum of two or three further accretive transaction within the coming months. We were able to close the tap issue within a short period of time and would like to thank our investors for their trust and confidence.”, says Remco Westermann, CEO.
The information in this press release has been made public through the agency of the responsible person set out below for publication at the time stated by MGI’s news distributor EQS Newswire at the publication of this press release. The responsible person below may be contacted for further information.
For further information, please contact:
Chairman of the Board and CEO
+49 40 411 885206
Jenny Rosberg, ROPA, IR contact Stockholm
Axel Mühlhaus / Dr. Sönke Knop, edicto GmbH, IR contact Frankfurt
+49 69 9055 05 51
About Media and Games Invest plc
Media and Games Invest plc is a digital integrated games and media company with main operational presence in Europe and North America. The company combines organic growth with value-generating synergetic acquisitions, demonstrating continuous strong, profitable growth with a revenue CAGR of 45% over the last 6 years. Next to strong organic growth, the MGI Group has successfully acquired more than 30 companies and assets in the past 6 years. The acquired assets and companies are integrated and amongst others cloud technology is actively used to achieve efficiency gains and competitive advantages. The Company's shares are listed on Nasdaq First North Premier Growth Market in Stockholm and in the Scale segment of the Frankfurt Stock Exchange. The Company has a secured bond that is listed on Nasdaq Stockholm and on the Frankfurt Stock Exchange Open Market as well as an unsecured bond listed on the Frankfurt Stock Exchange Open Market.
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Information to distributors
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