MTG completes divestment of ESL Gaming and becomes a pure-play gaming group

Stockholm
April 21, 2022
08.00 AM CEST

STOCKHOLM — Modern Times Group MTG AB (publ) (“MTG”) today announced that it has successfully closed the transaction to divest ESL Gaming to Savvy Gaming Group. ESL Gaming is therefore no longer part of MTG and will be reported as ‘Discontinued operations’ in the group’s financial results for Q1 2022 and will be deconsolidated from Q2.

Stockholm
April 21, 2022
08.00 AM CEST

MTG will now continue its growth journey as a fast-growing international mobile gaming group with a diversified portfolio of games across a wide range of popular genres. The divestment is expected to generate net proceeds of USD 875 million (SEK 8,174 million) for the group and at least 40% of the money will be returned to MTG’s shareholders through a combination of a share redemption and a share buyback program. The final structure of the two programs will be published in the notice to the AGM 2022. The rest of the proceeds will be used to strengthen MTG’s position in the global gaming market and to successfully continue to execute on the group’s M&A strategy.

MTG’s Group President and CEO Maria Redin commented:

“We’re excited for ESL Gaming to take the next step on their journey as the transaction closes, as well as for the opportunities that MTG sees going forward as gaming group. I would like to thank everyone involved in this transaction, and in particular ESL’s leadership team. Ralf Reichert and Craig Levine have been the best partners that we could have imagined on this journey. I wish them and everyone at ESL the best of luck and immense success going forward.”

Ralf Reichert, Co-CEO and Co-Founder of ESL commented:

“When we founded ESL over 20 years ago, our goal was to bring esports to fans all around the world and enable our players to become stars. Today esports enjoy worldwide recognition and together with MTG we have been in the driver seat of the industry’s development making ESL the global category leader. Now it is time to, together with FACEIT, deliver an end-to-end solution that supports game developers and publishers to build unprecedented sustainable competitive ecosystems and take esports to the next level"

BACK