GiG Set to Restructure with Brand Split into Two Separate Entities
Gaming Innovation Group (GiG) has outlined its timeline for a major restructuring process, which will see the company split into two distinct entities. A special shareholders meeting, scheduled for 23 September, will serve as the deciding point for this restructuring proposal.
Formation of Gentoo Media and GiG Platform
Once approved, the restructuring will result in the creation of two independent companies: Gentoo Media (formerly GiG Media) and GiG Platform. GiG Platform will be spun off to operate as a separate public company.
According to the proposal, the spinoff will be completed through a distribution of Norwegian Depositary Receipts (NDRs) to shareholders, with each NDR representing a beneficial interest in one share of GiG Software PLC, the Maltese entity operating GiG Platform.
The split is expected to enable both businesses to grow more efficiently. GiG’s Media division has already shown strong growth, reporting a 39% year-on-year revenue increase to €30.3 million for Q2 2024. Meanwhile, the Platform & Sportsbook operations experienced a 21% revenue decline, dropping to €7.3 million.
However, GiG chairman Mikael Riese Harstad stated that after a “comprehensive restructuring” over the past year, the Platform segment “is now better positioned than ever to meet the high expectations set for it.”
The push for a division of the two businesses stems from discussions as early as 2021. At that time, GiG employee and shareholder Hessi Mocca questioned the logic of keeping the two divisions under one umbrella, saying:
“Are we a media company with a good platform or are we a platform company with a good media? There is nothing central keeping those two companies together.” The split is viewed as a way to drive greater value for shareholders and improve growth potential for each entity.
Timeline for the Spinoff Process
GiG has provided a detailed timeline for the restructuring, noting that 23 September will be the last day of trading for GiG shares inclusive of the right to receive NDRs. The ex-date and record date are set for 24 and 25 September, respectively, with distribution expected on or about 30 September. Shareholders trading through Euroclear Sweden on NASDAQ Stockholm will receive Swedish Depository Receipts (SDRs) instead of NDRs.
GiG referenced a third-party analysis that estimates GiG Platform may represent 14% of GiG’s total pre-spinoff value. However, the company cautioned that these figures are general estimates and may not reflect GiG Platform’s final market capitalisation when trading begins on NASDAQ’s First North Premier Growth Market in Stockholm.
