NODWIN Gaming, the esports arm of listed gaming company Nazara Technologies, is set to raise a fresh round of funding from its existing investors to support business growth. However, Nazara has decided not to take part in this funding round, which will result in a dilution of its ownership and the loss of its majority control in NODWIN.
Nazara Technologies confirmed the move in a recent stock exchange filing, stating that its board approved the decision in a meeting held earlier. The company clarified that it is not selling any of its existing shares but is simply choosing not to invest additional capital. As a result, new funds from other investors will lead to a decrease in Nazara’s ownership percentage.
Following the completion of the funding round, Nazara will also give up some of the controlling and restrictive rights it currently holds as the majority stakeholder. These include rights that allow it to influence major decisions at NODWIN. Once the deal is finalised, NODWIN will be reclassified as an associate company. Despite this change, Nazara will remain the largest shareholder in the esports firm.
Nazara explained that this decision is in line with its broader strategy to focus more on developing its core gaming intellectual properties, rather than investing further in non-core segments like esports.
The proposed changes are still subject to shareholder approval. Nazara has scheduled an extraordinary general meeting on August 13 to seek approval for the declassification of NODWIN as a subsidiary. If approved, Nazara will move forward with signing detailed agreements to formalise the new ownership and governance structure.
According to Nazara, this step will give NODWIN greater financial and operational flexibility, allowing it to scale more rapidly in the highly competitive esports and youth media industry.
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