Sweden’s Embracer issues 100 mln new shares to PIF’s Savvy Group for $1 bln

Logo of Swedish videogame holding company Embracer Group

Swedish videogame holding company Embracer Group AB issued nearly 100 million shares to Savvy Gaming Group (SGG), which is owned by the Public Investment Fund (PIF), for $1.05 billion.

When the share issue is complete, Savvy will own 8.1% stake in Embracer and 5.4% votes in the company, the videogame company said in a statement.

The share issue will help Embracer strengthen its shareholder base in the long term, as Savvy agreed on a lock-up of 360 calendar days starting June 8, 2022, with the clear intention to be a long-term shareholder and to continue to support Embracer's future growth and M&A ambitions.

Embracer will use the share issue proceeds to further strengthen its financial position, enabling it to continue its acquisition strategy by complementing existing operations with new game publishers, game development studios or other assets.

Last January, the Kingdom’s sovereign wealth fund launched Savvy to be a leading player in the electronic games development sector on the local and international levels, Argaam earlier reported.

For More Mergers and Acquisitions