Media and Games Invest to issue EUR 40 million additional bonds to fund future acquisitions

STOCKHOLM: Media and Games Invest (MGI) has evaluated different options to finance accelerated growth and decided to focus on non-equity instruments.

The proceeds from the increase will be used to facilitate future organic growth, whereas there is a good pipeline of potential acquisitions.

Based on strong indicative support from credit investors MGI plans to finance upcoming M&A opportunities by issuing additional bonds of a total up to of EUR 40 million in a subsequent tap issue permitted by the framework of the initial bond issued in November last year.

The proceeds from the increase will be used to facilitate future organic growth, whereas there is a good pipeline of potential acquisitions.

As announced on February 18th, the Board has been evaluating various options over the past weeks to -next to its strong cashflow from operations- further finance the rapid organic and M&A-driven growth.

Following strong indicative support from existing and new credit investors combined with good development of the MGI bonds, which are currently trading well above par, the Board has decided to increase the outstanding amount under its existing 2020/2024 bonds.

“Since 2014, we have grown at an average rate of about 45% per year whilst growth is accelerating, and we grew with 67% net revenues in 2020. Also, for 2021 we already had a good start and are planning to further continue this profitable growth path. At the beginning of this year, we have already been very successful on the M&A side with the acquisition of LKQD in the media segment and KingsIsle in the games segment as well as on the organic side with the licensing of further promising mobile games titles and the launch of Trove Korea. In addition to the very strong operational business development, we also have a strong pipeline with a good line-up of very promising acquisition targets, where we expect to be able to close some of them within the next months. With the announced tap issue, we are planning to build a strong war chest to finance such value accretive growth projects.”, says Remco Westermann, CEO of MGI.

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.

About the author

Leave a Reply

Your email address will not be published.