South Korea's Krafton To Acquire 10% Of Polish Gaming Company PCF Group

PCF Group, a Polish video game producer, announced late Tuesday that Krafton Inc, a South Korean business funded by China's Tencent, will purchase a 10% interest in the company, pushing its shares up about 10%.

Krafton will subscribe for freshly issued PCF Group shares at an issue price of 40.20 zlotys per share, a 9% premium to Tuesday's closing, under the investment agreement inked by PCF Group and its biggest shareholder and CEO Sebastian Wojciechowski.

By 0716 GMT, PCF Group shares were up 9.9% to 40.4 zlotys.

"For PCF, attracting an investor in the form of Krafton (creator of PUBG, among others) may positively translate into the quality and marketing of the games under development," Piotr Bogusz at Erste Group wrote in a note.

Wojciechowski holds a 49.76 per cent stake in the maker of high-budget shooter games, such as "Painkiller", "Gears of War: Judgment" or "Outriders".

The Polish firm intends to offer up to 5,853,941 shares to generate up to 295 million zlotys ($68.27 million) to implement its new strategy of self-publishing games.

While the price may vary depending on the investor, Bogusz stated that the 40.20 zlotys per share agreed upon with Krafton "may be a certain factor for other investors."

If the maximum number of shares is released, Krafton will pick up 144.5 million zlotys in shares and will be the primary investor in the issuance, according to Bogusz.