Nazara to acquire additional 6.05% stake in Sportskeeda for Rs 20 crore
The company said the stake acquisition in Absolute Sports has been done to consolidate shareholding in the latter
Gaming company Nazara Technologies has entered into a Share Purchase Agreement with Porush Jain and Absolute Sports, the owner of Sportskeeda.com, to acquire a 6.05% equity stake of Absolute for Rs 19.99 crore. The consideration will be paid in cash and the acquisition is expected to close in 30 days.
The company said that the stake acquisition in Absolute Sports has been done to consolidate shareholding in the latter.
With the execution of the new Share Purchase Agreement, the old Share Purchase Agreement dated June 24, 2022, executed for a consideration of Rs 4.99 crore with Porush Jain and Absolute Sports will stand terminated since the closing could not take place within the timelines.
Nazara said Absolute Sports is a material subsidiary of the company and hence would fall under related party transactions. It added that the promoter/promoter group/group companies have no interest in Absolute. The transaction is on an arm’s length basis, it added.
Absolute Sports deals in the business of sports media, sports consultancy, sports management, sports events, sports good retail online, sports magazines, online and print news coverage of football, cricket, hockey, kabaddi, badminton, table tennis, and all other sports.
Absolute Sports' turnover has been on a steady growth path. In FY22, the company's turnover stood at Rs 80.65 crore compared to Rs 35.28 crore in FY21 and Rs 15 crore in FY20. As on March 2022, the company held a 75.78% stake in Absolute Sports.
