Nazara Technologies, a gaming company, announced a new stock purchase agreement with Absolute Sports. With this deal, the gaming company is expected to secure a 6.05% stake for INR 19.99 crore in Absolute Sports. The market will be completed in 30 days and the consideration will be paid in cash.
The old share purchase agreement dated June 24, 2022 entered into for a valuation of INR 4.99 crore with Porush Jain and Absolute Sports will be revoked with the conclusion of the new share purchase agreement as the closing could not take place in time.
Absolute Sports is a structural subsidiary of Nazara and therefore falls under related party transactions. He went on to explain that the promoter/promoting group/group organizations are not interested in Absolute. It was also reported that the transaction was completed on arm’s length terms.
Absolute Sports specializes in sports media, sports consultancy, sports management, sports events, online sporting goods retail, sports magazines and online and print football news coverage , cricket, hockey, kabaddi, badminton, table tennis and all other sports.
Absolute Sports’ turnover is constantly increasing. The company’s revenue in FY22 was INR 80.65 crore compared to INR 35.28 crore in FY21 and INR 15 crore in FY20. Absolute Sports held a 75.78% stake in the company as of March 2022.