Statement from the Independent Bid Committee of Fantasma Games AB (publ) Regarding the Public Offer from EveryMatrix Software Limited

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Fantasma Games: A New Chapter in the iGaming Landscape

Introduction to Fantasma Games

Founded in 2016 and headquartered in Stockholm, Fantasma Games AB (publ) has carved a niche for itself in the competitive world of iGaming. The company is renowned for its innovative approach to game development, aiming to create "slots beyond gambling." With a growing portfolio that includes popular titles like Prometheus: Titan of Fire, Fortune Llama, and Hades: River of Souls, Fantasma has established partnerships with over 250 operators, including industry giants such as BetMGM, DraftKings, and LeoVegas.

EveryMatrix’s Public Offer

On September 18, 2024, EveryMatrix Software Limited made headlines by announcing a public cash offer for Fantasma’s shareholders. The offer, priced at SEK 59 per share, values the company at approximately SEK 209.8 million. This proposal comes with a significant premium of 21.40% over the closing price of Fantasma’s shares on September 17, 2024, and even higher premiums when compared to the average share prices over the last 30 and 90 trading days.

The Independent Bid Committee of Fantasma has unanimously recommended that shareholders accept this offer. This recommendation is rooted in a comprehensive evaluation of the company’s strategic and financial position, market conditions, and future growth prospects.

The Independent Bid Committee’s Evaluation

The Independent Bid Committee, composed of independent board members, has taken a thorough approach in assessing the offer. They have highlighted several key factors influencing their recommendation:

  1. Robust Business Model: Fantasma operates in a resilient segment of the iGaming value chain, which is characterized by attractive growth opportunities. However, the committee acknowledges the challenges posed by a fluctuating macroeconomic environment, including high inflation and interest rates.

  2. Market Sentiment: The current investment climate favors larger companies with diversified revenue streams, making it increasingly difficult for smaller firms like Fantasma to attract institutional capital. This trend is expected to persist, limiting the benefits of being a publicly listed company.

  3. Liquidity Concerns: The committee notes that the liquidity of Fantasma’s shares is low, primarily due to concentrated shareholding. This situation is unlikely to improve in the near term, further complicating the company’s financial landscape.

  4. Bid Premium: The offer’s premium is competitive compared to recent bids on the Nasdaq First North Growth Market, aligning with market expectations and providing a compelling reason for shareholders to consider acceptance.

  5. Shareholder Sentiment: A significant portion of Fantasma’s shareholders, representing 50.79% of the total shares, have already committed to accepting the offer. This includes key figures such as Fredrik Johansson, the CEO and co-founder, and other influential stakeholders.

Long-Term Value Considerations

While the Independent Bid Committee recognizes the long-term potential of Fantasma, they also emphasize the uncertainty surrounding its realization. The risks associated with the company’s future financial performance and market dynamics make it challenging to argue that the long-term value exceeds the immediate benefits of the offer.

The committee has also explored other potential opportunities, including interest from competing parties, but has not identified any viable alternatives that could match the current offer.

Fairness Opinion and Advisory Support

To ensure a comprehensive evaluation, the Independent Bid Committee sought a fairness opinion from Svalner Skatt & Transaktion KB, which concluded that the offer is fair from a financial perspective for Fantasma’s shareholders. Additionally, the committee has engaged Penser by Carnegie and Carnegie Investment Bank AB as financial advisors, alongside Snellman Advokatbyrå AB for legal support.

Impact on Fantasma’s Organization

EveryMatrix has indicated that it does not intend to implement any significant changes to Fantasma’s existing operations, management team, or employee terms. This assurance is crucial for maintaining stability within the organization during this transition period.

Conclusion

As Fantasma Games navigates this pivotal moment in its corporate journey, the public offer from EveryMatrix presents both opportunities and challenges. With a strong recommendation from the Independent Bid Committee and a significant portion of shareholders poised to accept the offer, the future of Fantasma Games is set to unfold in a new direction. The company’s commitment to innovation and quality in the iGaming sector remains steadfast, even as it contemplates this transformative step.

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