| Tags: CS:GO
| Author The News One
Heroic To Get New Owners
The Norwegian organization is set to seek financial solvency under new ownership
According to an announcement made on Monday by the Norwegian stock market, the Heroic Group has recently entered into a contractual arrangement with Krow Bidco AS. As per the agreement, Krow Bidco AS is set to launch an offer aimed at acquiring all outstanding shares of the company. The Heroic Group has strongly advised its shareholders to accept the offer.
Reports indicate that the offer is anticipated to be finalized by June. Valued at 2 NOK per share, which equates to approximately $0.19, the total worth of all shares is estimated to be nearly 56 million NOK or $5.2 million. Notably, shareholders with a collective ownership of around 42%, including the company's current board and management, have already signed conditional purchase agreements. These agreements will become effective if the prospective buyer enters into similar agreements to acquire 75% of all outstanding shares.
According to HLTV.org, ULTI Agency played a key role in finalizing the arrangement. The agency has an impressive portfolio of clients, including acclaimed talents such as Jonatan “Devilwalk” Lundberg, Håkon “hallzerk” Fjærli, and Fredrik “roeJ” Jørgensen. They had previously brokered the deal that saw Cloud9 acquiring Gambit’s roster.
The buyer, Krow Bidco AS, remains shrouded in secrecy, with scant details available. It is known solely as a “Norwegian private limited liability company owned by a regulated EU investment fund.” However, the lack of further information about its structure, ownership, and investment activities makes it difficult to ascertain the full extent of Krow Bidco AS's operations.
This development surfaces as Heroic's CS:GO team actively participates in the BLAST.tv Paris Major. Led by the skilled Casper “cadiaN” Møller, the team showcased their prowess by clinching a playoff qualification on Sunday, alongside Vitality. This noteworthy achievement further solidifies Heroic's impressive streak of four consecutive Major playoffs appearances, cementing their reputation as a force to be reckoned with in the world of CSGO.
Heroic's extraordinary meeting yesterday did not go to plan as they were unable to hit their fundraising targets and have now slashed their offered share price by half.https://t.co/lNaVFNSWRk
— Ryan Friend in 🇫🇷 (@RyanAtDust2) March 21, 2023
In the wake of enduring months of financial turbulence, the company behind the Danish squad now faces a pivotal moment as a sale offer emerges. The Heroic Group's struggles have been evident, with its stock value plummeting to a mere 0.80 NOK. To bolster their finances, the group resorted to the issuance of new shares, but these efforts only provide temporary relief, enough to sustain operations until summer 2023.