Astralis has entered into an agreement to transfer the League of Legends European Championship (LEC) slot (“the LEC slot”) to a newly formed wholly owned subsidiary AK-Game SAS at a total agreed valuation of DKK 194 million. Subesequently Karmine Corp SAS will aquire 66,67 % of the shares in AK-Game SAS for DKK 129 million.
The sale will be completed in tranches from 2023-2025 and Astralis will retain a capital interest in AK-Game SAS of 33,33 %. The Agreement contains provisions for Astralis to trigger additional share transfers, up to ceding 100% of the shares to Kcorp by 2031.
The estimated net gain before tax from the sale in 2023 is DKK 153 million with an estimated aggregated cash flow effect 2023-2025 of DKK 112 million.
The sale is subject to a number of conditions of which all are expected to be fulfilled in the near future and the transfer of the LEC slot is expected to come into force in November 2023.
Anders Hørsholt, CEO of Astralis A/S
- The LEC is an extremely well-run and professional league, and we are proud of the development and growth we have been a part of since 2019.
- When we experience a significant increase in the value of an asset, as is the case here, as a company we have an obligation to assess the opportunities a sale will give us against the value of retaining the rights. We have assessed that the price and conditions are so promising that we choose to sell now.
- It is a big decision to sell the rights and step out of the LEC, which we have been very happy to be a part of. I would like to thank the fans, partners and everyone who has supported and been a part of our time in the LEC. It has been a great experience, and we look forward to following the development in the future.
- With the sale, we are consolidating ourselves and securing a solid foundation for the future, says Anders Hørsholt.
Guidance for 2023
Following the sale of the LEC slot the guidance for 2023 is updated. The guidance for net revenue is now expected in the range of between DKK 70 million – DKK 75 million and the guidance for EBITDA is now expected in the range between DKK 150 million and DKK 155 million including gain from the sale of the LEC slot DKK 153 million. Previous guidance was revenue between DKK 82 and DKK 87 million and an EBITDA between DKK -1 million and DKK +4 million.