Original-Research Media and Games Invest plc (von GBC AG): Buy
Original-Research: Media and Games Invest plc - von GBC AG
Einstufung von GBC AG zu Media and Games Invest plc
Unternehmen: Media and Games Invest plc
Anlass der Studie: Research Note
Kursziel: 6.92 EUR
Analyst: Marcel Goldmann, Cosmin Filker
Capital increase for growth financing successfully carried out; continuation of dynamic growth course expected; oversubscribed capital measure opens up significant inorganic growth potential; price
target lowered to EUR 6.92 (previously: EUR 7.35) due to the dilution effect that has occurred.
Successful capital increase for consistent implementation of the M&A pipeline
On 6 May 2021, Media and Games Invest plc (MGI) announced the closing of a cash capital increase. Thus, in accordance with the previous company announcement, the company has successfully completed the bookbuilding process of the direct share placement, and resolved to issue 20,930,232 new shares based on the authorisation granted at MGI's Annual General Meeting on 15 April 2021. The issue price of the new shares in the direct share placement was SEK 43 per share (equivalent to approximately EUR 4.30) and was determined in an accelerated bookbuilding process.
The direct share placement was heavily oversubscribed and generated high interest from both Swedish and international investors as well as existing shareholders. The company has therefore decided to increase the direct share placement to SEK 900.0 million (approx. EUR 89.0 million).
Upon completion of the transaction, the number of outstanding shares and voting rights will increase by 20,930,232 shares, from 128,749,748 to 149,679,980, as a result of the direct share placement, which represents a dilution of approximately 14.0% of the number of shares and voting rights to the company for the existing shareholders. In parallel, the share capital will increase by EUR 20,930,232 from EUR 128,749,748 to EUR 149,679,980.
In addition, as part of the capital measure, the company announced that both existing and new prominent investors participated in the capital measure. According to the company's website, for example, the following well-known 'long-only' investors have joined the shareholder group:
Top 3 new investors shareholding in % also invested in, among others:
Janus Henderson Global Investors (UK) 5.50% Embracer, Tencent, Activision Blizzard
Didner & Gerge Fonder (Sweden) 0.50% Embracer
BMO Global Asset Manager (UK) 0.30% Tencent
In addition, the following investors, among others, further increased their shareholding: