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MTG Enters Into Term Sheet With HUYA Inc. Regarding the Forming of a Joint Venture for China Esports Expansion and HUYA Investment Into ESL

George Miller

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MTG Enters Into Term Sheet With HUYA Inc. Regarding the Forming of a Joint Venture for China Esports Expansion and HUYA Investment Into ESL
Photo Source: caixinglobal.com
Reading Time: 3 minutes

 

Modern Times Group MTG AB (MTG) announced the entering into a binding term sheet and the forming of a strategic joint venture as part of a transaction that allows HUYA Inc. to acquire a minority stake in MTG’s portfolio company ESL.

  • Modern Times Group MTG AB (MTG) announces the signing of a term sheet for a new strategic partnership with leading Chinese game live streaming platform HUYA Inc. (Huya).
  • Pursuant to the term sheet, Huya has agreed to form a joint venture with MTG’s portfolio company Turtle Entertainment GmbH (ESL), the largest esports company in the world, to facilitate expansion into China, and to acquire a minority interest in ESL. The investment size is USD 30 million made up of both primary and secondary shares.
  • ESL and Huya plan to host and build local Chinese esport competitions connected to the global ESL tournament calendar to ensure maximum Chinese esports athlete participation on a global scale.
  • As part of the transaction, ESL will issue new shares at a value of USD 22 million to increase capital to be used for further expansion, parts of which will be used by ESL to fund its pro rata part of the joint venture company.
  • The terms of the transaction contemplated under the term sheet are binding. Both the joint venture and the acquisition by Huya of a minority interest in ESL are subject to customary confirmatory due diligence as well as the negotiation and signing of definitive transaction documents.

If completed, the transaction will further strengthen ESL‘s position as the leading and largest esports company globally, and the forming of a joint venture between ESL and Huya will create a natural alliance to facilitate expansion of ESL’s offering in the Chinese market. The Chinese esport market in 2019 is expected to generate revenues of USD 210 million, overtaking Western Europe as the second-largest esport region globally in terms of revenues*.

Huya will acquire USD 30 million worth of primary and secondary shares in ESL at a pre-money enterprise value of ESL of USD 425 million. As part of the transaction, ESL will issue new shares at a value of USD 22 million to increase capital to be used for further expansion, parts of which will be used by ESL to fund its pro rata part of the joint venture company.

“We are pleased to establish a close partnership with ESL, which demonstrates Huya’s further penetration into the global esports sector. Together with ESL, we are thrilled to bring more world class global esports content to Chinese gaming enthusiasts,” says Rongjie Dong, Chief Executive Officer of Huya.

“We are excited to announce this term sheet for an important strategic partnership which provides us with a strong partner in Huya to pave the way for a successful ESL expansion into the thriving Chinese esport and gaming market in due time,” says MTG President and CEO Jørgen Madsen Lindemann.

Huya is a leading game live streaming platform in China with a large and active game live streaming community. The Company cooperates with esports event organizers, as well as major game developers and publishers, and has developed esports live streaming as one of the most popular content genres on its platform. The Company has created an engaged, interactive and immersive community for game enthusiasts of China’s young generation. Building on its success in game live streaming, HUYA has also extended its content to other entertainment content genres. HUYA’s open platform also functions as a marketplace for broadcasters and talent agencies to congregate and closely collaborate with the Company.

Founded in Germany in 2000, MTG’s portfolio company Turtle Entertainment GmbH (ESL) has been developed into the world’s largest esports company. It operates high profile, branded international leagues and tournaments such as ESL One, Intel® Extreme Masters, ESL Pro League and other top tier stadium-size events, as well as ESL National Championships. Through the Joint Venture ESL and Huya will build local Chinese esports competitions connected to the global ESL tournament calendar to ensure maximum Chinese esports athlete participation on a global scale.

The terms of the transaction contemplated under the term sheet are binding. The transaction is subject to customary confirmatory due diligence, as well as further negotiation of, and agreement on, complete transaction documentation and signing is expected to take place during the fourth calendar quarter in 2019. MTG – the majority owner in ESL – will retain majority ownership of ESL also following a completed transaction. The remaining shares in ESL are owned by the founders of ESL.

Source: MTG

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Asia

China Vows to Work with Philippines to Combat Online Gaming Crimes

Niji Narayan

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China Vows to Work with Philippines to Combat Online Gaming Crimes
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China has vowed to work closely with the Philippines to combat cyber-criminal activities arising from Philippine Offshore Gaming Operations (POGOs), according to a statement issued by the Chinese Embassy in Manila.

“The Chinese side would like to continue to work closely with the Philippines to combat such crimes as telecommunications fraud, illegal online gambling, money-laundering, illegal employment, kidnapping, extortion, torture, murder and the like so as to effectively protect the legitimate rights and interests of nationals of the two countries, and to promote the China-Philippines friendship and cooperation,” said the statement.

The embassy released the statement after local media reported that the Ministry of Public Security of China has cancelled the passports of thousands of Chinese nationals working for the Philippine Offshore Gaming Operations (POGOs).

In order to crack down on cross-border telecom fraud crimes, the embassy said China’s Ministry of Public Security has obtained a list of Chinese nationals suspected of committing long-term telecom fraud crimes abroad, who are classified as the persons prohibited from exiting China according to the Exit and Entry Administration Law of China.

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Asia

TVBET will showcase its streaming solutions to the Indian market at SPiCE

George Miller

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TVBET will showcase its streaming solutions to the Indian market at SPiCE
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The leading B2B provider TVBET is going to present its suite of versatile live-games at SPiCE India next month. In addition to presenting the existing product line as well as recently released 1Bet, Lucky6, and BackgammonBet, the company will share its experience of new market expansion with the industry representatives.

Thanks to the growing portfolio of widely beloved games, TVBET made remarkable progress in 2019, by starting cooperation with more than 100 casinos and betting operators. Currently, it pursues the goal of global market expansion. This time in Goa, the company experts will be glad to meet igaming experts both local and international to describe what benefits can be achieved through the live-games integration.

Peter Korpusenko, CEO TVBET: “According to our strategy, we see India as a promising igaming market for further growth and can’t ignore the increasing interest in top-notch games from players. Plus, we are actively entering the Middle East region in parallel, which is why we do know what formats for web, mobile, and land-based will bring success to both parties. At SPiCE, we’d like to reveal the full potential of TVBET games, that proved to be excellent”.

In total, the full TVBET’s integration consists of 11 well-known card and lottery games, already helping companies to increase their GGR. All the products are led by the charming presenters and broadcasted online in 4K format.

The SPiCE India conference will be held in Goa, March 25-27, and the company will be presented at stand 1006 during the whole conference.

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Asia

KN ParadiseCam Ranh Integrated Resort to Further Develop Vietnam’s Growing Gaming Industry

George Miller

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KN ParadiseCam Ranh Integrated Resort to Further Develop Vietnam’s Growing Gaming Industry
Reading Time: 2 minutes

 

KN Paradise Cam Ranh Integrated Resort (“KNIR”) is a development project incorporated under the KN Cam Ranh Company Limited in Cam Ranh, Khanh Hoa Province, Vietnam. KN Cam Ranh Company Limited has announced their formal intention to develop partnerships in the implementation of investment and operation of their KNIR project. This comes as the Vietnamese government has recently issued the Investment Certificate allowing the KNIR to develop a large-scale casino complex.

KNIR project spans over 800 hectares of land in Cam Ranh and inclusive of a 5 kilometer stretch of pristine beachfront property, KNIR is perfectly located within a five minutes car drive from the Cam Ranh International Airport and 30 minutes’ drive from the Nha Trang City. The KNIR master plan includes a wide range of hospitality and residential properties, as well as an abundance of premium facilities including a prestigious award-winning golf course, multiple 4-5 star hotels, luxury resorts, branded apartments, villas, mansions, shophouse, townhouses, casino complex, shopping and duty-free center, MICE facilities, luxury marina, union square, beach clubs, water park, theme park and many more. The 27-hole golf course, named KN Golf Links, opened under the development and design of the golf legend Greg Norman on 27 October 2018.

KN Cam Ranh Company Limited has also announced their formal intention to develop a partnership of the casino complex with an international operator. With the Investment Certificate recently approved by the Vietnam government, KNIR is permitted to develop a casino on the resort premises. The casino is planned to cover 16.2 hectares and has been approved for operating 200 gaming tables and 2,000 electronic gaming machines.

The Investment Deputy General Director of KNIR stated that: “It is with great enthusiasm that we are adequately ready to cooperate with the international casino gaming operators for the development and operation of our integrated resort in Cam Ranh. Khanh Hoa Province, Vietnam. Undeniably, our strategic location and development plan will create an indispensable addition to the Pan-Asia integrated resort marketplace.

The company plans to announce increased industry integration and participation, including participation in a variety of gaming events and trade shows throughout Asia.

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