SYDNEY, AUSTRALIA: iCandy Interactive Limited has acquired 11.78 million shares translating into 7.78% of ASX-listed game developer Mighty Kingdom Ltd.
The acquisition is completed at A$0.135 per Mighty Kingdom ordinary share, costing a total of A$1.59 million and is funded by existing cash reserves of iCandy.
Potential Cooperation Between The Companies
Mighty Kingdom is one of the largest Australian-headquartered game developers that develops and publishes games, much like iCandy. The nature of business of both companies are largely similar.
The acquisition fits with iCandy’s strategy of expanding its reach within the gaming sector in the region; driving value through collaboration and partnerships with strategic partners.
iCandy views the team, existing portfolio and the forward pipeline at Mighty Kingdom favourably and believes that potential business synergies can be explored through leveraging iCandy’s expertise in game development and distribution, especially into high value gaming markets in Asia.
Attractive Propositions to iCandy
The Company believes that Mighty Kingdom’s valuation is attractive when compared to regional peers, given that only a handful of gaming companies are listed on the ASX.
As such, the acquisition of a significant shareholding in Mighty Kingdom at the price paid per share represents a compelling value opportunity for shareholders.
On the same basis, iCandy had recently announced, on 17 September 2021, an On Market Share Buy Back Program of the company’s own shares in line with shareholder value maximisation.
Following successes of the Company’s launch of game titles Claw Stars on 30 June 2021 and Masketeers: Idle Has Fallen on 8 October 2020, as well as significant capital raising in the year 2020, iCandy’s Board is of the opinion that it is well positioned to source growth opportunities through mergers and acquisitions to supplement its ongoing organic development program.
Going forward, the Company will continue to review value-adding acquisitions within the sector whilst maintaining momentum within its internal development pipeline, including the release of hyper-casual game platform and games under Nextgamer, as well as the soon-to-be released game from the joint venture with Lemon Sky Studios – Sky Candy.
iCandy’s Chairman, Kin Wai Lau, commented: “The synergies between iCandy and Mighty Kingdom are clear and straightforward. We see the acquisition of a significant stake in Mighty Kingdom as a potential starting point of various opportunities to drive value for both companies.“
iCandy Interactive Ltd share price
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20 Sep, 2:19 pm GMT+10 ·Disclaimer