The future is looking brighter for SCi Entertainment this morning, after the firm raised an extra 60 million – with property tycoon Robert Tchenguiz and media giant Warner Bros buying up sizeable chunks of a new share placing.
SCi CEO Phil Rogers told Reuters that Warner Bros is set to become the firm's second-biggest shareholder, doubling its current stakehold to 20 percent with 15 million of new stock.
In addition, Warner Bros has also entered into a strategic distribution agreement for the US, Canada and Mexico. Warner will handle SCi's boxed product in the territories to drive growth in the North American market.
Tchenguiz's Thorson investment firm is expected to end up as SCi's biggest shareholder with around a 22 percent stake.
The company this morning announced an open offer of 171, 605, 424 new shares at 35p-per-share and reported: ‘Current trading is in line with expectations and the Company is on track to deliver cost savings of 14m from its rationalisation programme at a cost of 7m, as announced in February'.
Rogers said: Today we have significantly strengthened our relationship with Warner Bros. one of the world's largest media groups, to create an exciting strategic partnership, giving us increased scale in the North American market, to the benefit of all our major franchises.
The new financing puts us in a clear position to deliver on the strategic business plan which we announced in February with focus on cornerstone studios and core franchises, delivering high-quality, world class games.”
President of Warner Bros. Home Entertainment Group Kevin Tsujihara added:
This investment underscores Warner Bros' commitment to becoming a major presence in the video game business, With SCi's new management team in place along with their track record of rich franchises like Tomb Raider, Hitman and Deus Ex we believe we have formed an exciting partnership and a powerful engine for growth.”