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Blue Star Capital PLC - London-based investment company focused on the esports and new technologies sectors - Says its investment in Dynasty Gaming & Media Pte Ltd, in which it holds a 13% stake, has lost a significant amount of carrying value amid Dynasty's ongoing acquisition of Googly Media Holdings Pte Ltd. In November, Dynasty, a Singapore-based gaming platform provider, entered into an agreement to acquire the assets of Googly for around USD7.6 million, which valued the entire entity at USD15 million. The deal is expected to conclude by April 30. Following completion, based on a combined entity valuation, Blue Star says its holdings in Dynasty and its 0.6% stake in Googly will be valued at GBP450,000, significantly below its previous calculation of around GBP5.5 million.
Blue Star Executive Chair Tony Fabrizi says: "We are obviously very disappointed by the significant decline in carrying value for our investment in Dynasty. Unfortunately, market conditions in the esports sector have been particularly challenging over the last year and whilst the opportunity for the merged business looks exciting, outside investors have ultimately proved difficult to convert. We understand that the merged business remains on track to be cashflow positive later this year and will continue to provide support to Dynasty's management wherever possible".
Current stock price: 0.070 pence per share, down 3.5% on Wednesday
12-month change: down 61%
By Hugh Cameron, Alliance News reporter
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