Moneycontrol PRO
Upcoming Event : LeapToUnicorn - mentoring, networking and fundraising for startups. Register now

Nazara Technologies to acquire 6.05% in Absolute Sports for Rs 20 crore

Since Absolute Sports is a material subsidiary of Nazara Tech, the acquisition would fall under related party transactions

October 21, 2022 / 05:43 PM IST
(Representational image: Florian Olivo via Unsplash)

(Representational image: Florian Olivo via Unsplash)

Gaming firm Nazara Technologies said on October 21 that it has entered into a share purchase agreement with its material subsidiary Absolute Sports to acquire a 6.05 percent stake in the company for a cash consideration of Rs 19.99 crore. The company will acquire 12,323 shares representing 6.05 percent of the equity share capital of Absolute Sports on a fully diluted basis.

Nazara Tech said in an exchange filing that it has entered into the agreement dated October 20, 2022, with Porush Jain and Absolute Sports Private Limited (Absolute) for the deal.

Absolute Sports being a material subsidiary of the company, the deal will fall under related party transactions. "The promoter/promoter group/group companies of the Company have no interest in Absolute whose shares are being purchased. The transaction is on arm’s length basis," the filing added.

Absolute Sports deals in the business of sports media, sports consultancy, sports management, sports events, and sports goods retail online, among others. The acquisition will be in line with Nazara's growth and will help consolidate its shareholding in Absolute, it said.

The company also informed the exchanges that “upon execution of the aforesaid new share purchase agreement, the previous one dated June 24, 2022, executed for a consideration of Rs 4,99,91,172 entered by Nazra Tech with Mr Porush Jain and Absolute Sports Private Limited stands terminated since the closing could not take place within the timelines”.

Nazara had, in August, made acquisitions worth $10.40 million in the United States. It had acquired a 100 percent stake in US children’s interactive entertainment company WildWorks. The Indian gaming major which is also into sports media, had invested another Rs 44 crore to acquire a 67 percent stake in sports media platform ‘SportsKeeda’ in the same month.
Moneycontrol News
first published: Oct 21, 2022 05:42 pm