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Sa, 19. Juni 2021, 13:27 Uhr

Media and Games Invest

WKN: A1JGT0 / ISIN: MT0000580101

Original-Research: Media and Games Invest plc (von GBC AG): Buy


11.05.21 16:16
dpa-AFX

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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


ISIN: MT0000580101



Anlass der Studie: Research Note


Empfehlung: Buy


Kursziel: 6.92 EUR


Letzte Ratingänderung:


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:



Top 3 existing investors shareholding in %* also invested in, among others:



Oaktree Capital (US) 9.10% n/a.



Skandia Fonder (Sweden) 1.10% Embracer, Evolution Gaming Group,


Stillfront,EG7, MTG



Finlandia Group (Nordics) 0.70% n/a.



Following the announcement of the successful completion of the KingsIsle


acquisition in early February 2021, MGI intends to continue its growth


through the acquisition of further complementary games and media companies


or assets, as well as investing in further organic growth.



According to the company's own statements, it has an extensive pipeline of


potential acquisition targets within the games and media segments, many of


which could potentially be realisable candidates in the short term. With


the inflow of capital from the capital increase, the MGI Group intends to


strengthen its financial position in order to take advantage of these


acquisition opportunities in the short term, if necessary.



Forecasts and evaluation



As a result of the completed capital measure in conjunction with a reported


cash balance of EUR 51.70m at the end of the first quarter of 2021, MGI has


financial resources of around EUR 141.0m in our view. With this high


financial strength, we believe the company should now be in a position to


acquire two to three target companies from the M&A list (top 5)


communicated by MGI.



This would result in considerable growth and earnings potential as well as


extensive synergy effects within the group. It should be mentioned here


that the MGI management has already announced two to three acquisitions for


the current financial year. Since the completed capital measure has no


influence on our previous forecasts, which we had adjusted upwards with the


recently announced Q1 business figures, we are leaving our previous


estimates unaffected.



Should the MGI Group carry out further M&A transactions in the current


financial year following the acquisition of KingsIsle and LKQD, we will


adjust our existing forecasts and valuation accordingly. Due to the


dilution effect associated with the capital measure, we have determined a


new price target of EUR 6.92 per share and, thus, moderately lowered our


previous price target (EUR 7.35 per share). In view of the current price


level, we continue to assign a Buy rating and see significant price


potential.



Overall, we are convinced that the company will be able to continue its


successful growth strategy in the future and significantly increase


turnover and earnings. The acquisitions planned by the management for the


current financial year 2021 should increase the growth momentum to a much


higher level. This should also have a positive impact on the Group's


earnings. The acquisition of further prominent investors from the gaming


environment also supports our positive assessment that the company is on


the 'right track' to continue its successful course.



Die vollständige Analyse können Sie hier downloaden:


http://www.more-ir.de/d/22440.pdf



Kontakt für Rückfragen


Jörg Grunwald


Vorstand


GBC AG


Halderstrasse 27


86150 Augsburg


0821 / 241133 0


research@gbc-ag.de


++++++++++++++++


Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR. Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,7,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:


http://www.gbc-ag.de/de/Offenlegung


+++++++++++++++


Date (time) of completion: 11/05/2021 (15:25 pm)


Date (time) of first distribution: 11/05/2021 (16:15 pm)



-------------------übermittelt durch die EQS Group AG.-------------------




Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw.


Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung


oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.



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