Embracer's Coffee Stain unit to list with 500 mln SEK net cash
Embracer Group said Monday it will provide its video game unit Coffee Stain Group with 500 million Swedish Kronor in net cash as it prepares to spin off the business in a separate stock market listing.
The move is part of a wider restructuring by the Swedish gaming company to split itself into three independent, publicly listed entities following a period of weak financial performance.
According to Embracer, the cash position is on a pro-forma basis as of Sept. 30, at which time Coffee Stain had no financial debt.
The company said the capital would enable Coffee Stain to continue investing in its game portfolio and pursue potential acquisitions.
The listing of Coffee Stain, known for titles like "Goat Simulator" and "Valheim," is expected to be completed on Nasdaq First North Premier Growth Market in Stockholm in December.
The spin-off, which shareholders approved earlier this month, follows the separation of Embracer's tabletop games division, Asmodee.
The remaining Embracer business is set to be renamed Fellowship Entertainment after the transaction is complete.
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