iCandy Interactive (ASX: ICI) has completed the divestment of its subsidiary iCandy Digital Pte Ltd to Stockholm-based RightBridge Ventures for $4.8 million in scrip.
The company first announced the divestment in February this year. iCandy Digital has a small library of 26 mobile games and a 17% interest in esports Players League (ESPL).
Under the divestment deal, iCandy received almost 17.3 million RightBridge shares – equating to the $4.8 million. iCandy also had the option to purchase a further 2.18 million RightBridge share at a “nominal value”.
Combined with the option to subscribe for additional shares, iCandy’s holding in RightBridge will amount to 25%.
RightBridge is an esports investment company and is currently seeking an initial public offering on the Swedish Stock Exchange.
The company invests in esports entities that “shape the future” of the sector. Its portfolio includes a 10.7% stake in Esports Pulze AB, which iCandy says is a leading global esports platform.
RightBridge also owns 22% of Lilmix which has one of the world’s top 10 leading Counter-Strike esports teams.
By acquiring iCandy Digital, RightBridge will also secure its 17% interest in ESPL, which is a grassroot tournament network and technology platform with a presence across 17 countries in Asia, Europe and South America.
Rationale for iCandy Digital sale
According to iCandy, selling iCandy Digital was part of restructuring strategy that will enable it and RightBridge to maximise business efficiencies.
The divestment allows iCandy to focus on its core business activities of game development and publishing, while RightBridge will expand ESPL through its portfolio and Nordic esports and gaming ecosystem.
However, holding a substantial interest in RightBridge will enable iCandy to retain the benefits of its growth within the esports arena.
Last month, iCandy announced it was acquiring Lemon Sky Studios for $44.5 million to form a “new gaming powerhouse” which would make it the biggest of its kind in Australia and South East Asia.