Saudi Arabia wealth fund buys stake in Swedish gaming group Embracer

Stockholm — Saudi Arabia’s sovereign wealth fund is taking an 8.1% stake in gaming group Embracer via a direct share issue as part of a push into the games and esports industry.

Sweden’s Embracer said in a statement it was issuing 99.9-million shares at a price of 103.47 per share to Savvy Gaming Group, which is owned by Saudi Arabia’s $600bn Public Investment Fund (PIF), raising 10.3-billion Swedish kronor ($1.05bn).

Upon settlement the fund would hold 8.1% of shares and 5.4% of votes in Embracer, it said.

The PIF has been increasing its exposure to the video gaming industry, most recently it took a 5% stake in Nintendo, in May.

The PIF is run by governor Yasir Al Rumayyan, a close ally of Crown Prince Mohammed bin Salman. It is investing more to help diversify the Saudi economy and building an international portfolio that can give the country an income beyond crude sales. 

Embracer works under a model where founders of acquired companies run their firms as independent businesses with full creative and operational freedom.

In a separate deal, the PIF said on Sunday it will take a $185m stake in Capital Bank of Jordan. The fund signed a subscription agreement that would involve it buying 63-million newly issued shares to give it a 23.97% stake in the Jordanian bank, according to a statement.

The deal would raise Capital Bank’s shareholders’ equity to about $846m, helping to fund an expansion strategy in Jordan, Saudi Arabia and Iraq, and to grow its investment arm.

Reuters