iCandy sells non-core subsidiary to Fatfish Group’s Swedish eSports investment company Rightbridge for $4.8m

iCandy Digital Fatfish RightBridge Ventures AB ASX ICI FFG IPO
In exchange for the sale, iCandy will hold up to 25% in Rightbridge once it lists on the Swedish stock exchange this year.

Mobile gaming company iCandy Interactive (ASX: ICI) has announced it will divest its wholly-owned subsidiary iCandy Digital Pte Ltd to Sweden’s RightBridge Ventures AB in return for a 25% share in the eSports investment company.

As consideration for the divestment, iCandy will receive approximately 17.3 million Rightbridge shares to the value of $4.8 million and will have the option to purchase an additional 2.2 million shares at nominal value.

A holding of 19.5 million shares would take iCandy’s stake in Rightbridge to approximately 25% once it lists on the Swedish stock exchange this year.

Fatfish Group link

Stockholm-based RightBridge is a subsidiary of iCandy shareholder Abelco Investment Group AB, which, in turn, is a subsidiary of technology venture capital firm Fatfish Group (ASX: FFG).

Fatfish invests in companies that shape the future of eSports and videogames as part of the global digital entertainment industry, and has some of the industry’s senior executives on its board of directors.

The Abelco link has seen the divestment deemed a related-party transaction, which will require iCandy shareholder approval at an extraordinary general meeting.

Abelco will be excluded from voting at that meeting.

Further to today’s news Fatfish previously announced the planned roll out of its buy now pay later services in Singapore via its investee company Smartfunding Pte Ltd, which was scheduled to take place this week.

Divestment rationale

Divestment of its subsidiary will allow iCandy to focus on a core business, which includes managing a growing portfolio of new games (including successful titles Masketeers and Claw Stars), a joint venture studio with Lemon Sky Studios, and a strategic global partnership with Ohayoo.

iCandy Digital holds a strategic stake in eSports start-up ESPL, which it co-founded in 2019.

“As an eSports-focused investment company, Rightbridge is better positioned than iCandy to groom ESPL by providing [it] with more in-depth exposure to a wider portfolio of eSports companies via [its] Nordic network,” iCandy said.

“We will continue to maintain an indirect equity exposure to ESPL [through the Rightbridge equity] and will gain access to the Nordic market of eSports and videogames through RightBridge.”

The Nordic region is considered a bedrock of innovation, which has spun out a number of global gaming giants including Mojang Studios (developer of Minecraft), Supercell (Clash of Clans) and Rovio Entertainment (Angry Birds).

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