Hong Kong-listed Forgame Holdings Limited announced that the company will invest USD70 million to acquire a 21% stake in Magic Feature, developer of the mobile game "Tower of Saviors".
According to a report published by the company, the deal will also include USD20 million escrow monies that would be released to the sellers pursuant to the terms and conditions set out in the sale and purchase agreement. If Magic Feature achieves certain profit targets as provided in the sale and purchase agreement, a maximum amount of USD4.2 million potential contingent payment to the sellers will be available.
Forgame will make an additional acquisition of Magic Feature shares before December 31, 2014. On the completion of the deal, Forgame will own 35% of actually issued share capital of Magic Feature.
Magic Feature is engaged in developing and publishing mobile games. A key game in its portfolio is "Tower of Saviors", which is distributed in mainland China, Hong Kong and Taiwan, with a substantial number of users and high download rates. Tencent is the exclusive operator of "Tower of Saviors" in mainland China. Due to the good performance of this game, Magic Feature's after-tax income reached CNY38.591 million in 2013.
Listed on the Hong Kong Stock Exchange on October 3, 2013, Forgame Holdings Limited is a leading developer and publisher of webgames in China with a fast-growing mobile games business. Since its establishment in 2009, the company has successfully developed and launched more than 30 popular games. Its publishing platform, 91wan, has released 79 self-developed and licensed webgames and had attracted over 179 million registered players as of June 30, 2013.