Nazara’s board has “in-principally” approved availing a bank guarantee of up to INR 20 Cr to acquire the sports entertainment company
Nazara added that its resolution plan for acquiring Smaaash was subject to the terms of the letter of intent and requisite approvals from NCLT and other regulatory bodies
NCLT commenced insolvency proceedings against Smaaash in May 2022 in connection with dues owed to creditors such as Edelweiss, Yes Bank, and SIDBI, among others
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Online gaming major Nazara on Thursday (August 8) said that it has received the letter of intent (LoI) to acquire insolvency-ridden sports entertainment startup Smaaash Entertainment.
In a BSE filing, the listed gaming major said that it received the letter of intent from the resolution professional (RP) overseeing Smaaash’s corporate insolvency resolution process (CIRP) on August 7.
“…We wish to inform you that the committee of creditors of Smaaash… has approved the resolution plan submitted by Nazara. The company (Nazara) received an LoI from the RP of Smaaash on August 07, 2024, informing the company that it has been declared as the “Successful Resolution Applicant”,” the gaming major informed the bourses.
Nazara, however, added that its resolution plan for acquiring Smaaash was subject to the terms of the letter of intent and requisite approvals from the National Company Law Tribunal (NCLT) and other regulatory bodies.
Additionally, Nazara’s board on Thursday also “in-principally” approved availing a bank guarantee of up to INR 20 Cr to acquire the sports entertainment company.
“(Nazara board) in-principally approved availing performance bank guarantee facility for an amount not exceeding INR 20 Cr from Standard Chartered Bank in favor of the RP of Smaaash Entertainment Private Limited… for which the Company has received LOI dated August 07, 2024 from the RP,” the filing read.
In a separate filing, the gaming major also said that its adtech arm Datawrkz has set up a new wholly owned subsidiary in the UK to “expand digital advertising” operations in the country. The new entity will have an authorised share capital of £100.
Nazara’s move to acquire Smaaash comes a couple of months after reports surfaced that the listed gaming major, along with a consortium comprising financial services firm Resurgent India and Netweb managing director Sanjay Lodha, placed formal bids to buy the beleaguered company.
It is pertinent to note that NCLT commenced insolvency proceedings against Smaaash in May 2022 in connection with the dues it owed to creditors including the likes of Edelweiss ARC, Yes Bank, SIDBI and Mabella Investment Advisors. The company alone owes nearly INR 452 Cr to Edelweiss.
Smaaash’s RP Bhrugesh Amin has listed gaming machines, go-karts, and bowling alleys, among others as its assets spanning across its 13 outlets. This was the third resolution process for Smaaash after the previous two rounds were scuttled on account of litigation and other complications.
Notably, the development came on the same day as Nazara announced the acquisition of UK-based gaming studio Fusebox Games for INR 228 Cr. This comes at a time when the listed gaming major has been on an acquisition spree and has undertaken multiple buyouts including names like Comic Con India, marketing firm Publishme, events company esports company Ninja Global.
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