"Nazara Technologies Wins Bid to Acquire Smaaash Entertainment"

Nazara Technologies Limited has been named the successful bidder for the acquisition of Smaaash Entertainment Private Limited through the corporate insolvency resolution process. The Committee of Creditors (CoC) for Smaaash approved Nazara’s resolution plan on August 7, 2024.

At 9:30 am, Nazara Technologies’ shares were trading at ₹912.30 on the BSE, up by 2.15 points (0.24%), and ₹911.85 on the NSE, up by 6.30 points (0.70%).

Nazara Technologies has received a Letter of Intent from Smaaash’s Resolution Professional, confirming its status as the “Successful Resolution Applicant.” The acquisition is contingent on final approvals from the National Company Law Tribunal and other regulatory bodies.

Smaaash, which specializes in sports simulation and gamification technologies, entered insolvency proceedings in May 2022 due to a ₹292.4 crore default to Edelweiss Asset Reconstruction Company. The company operates 30 centres across India, offering attractions such as twilight bowling, motor racing, and go-karting.

The insolvency process began with creditor claims totaling ₹426.26 crore, involving entities like Edelweiss ARC, Mabella Investment Advisors, SIDBI, and Yes Bank. Nazara Technologies submitted its resolution plan by March 9, 2024, as part of the competitive bidding process.

Smaaash, which faced financial challenges during the Covid-19 pandemic, showed signs of recovery as restrictions eased. The acquisition by Nazara Technologies could potentially revitalize Smaaash and its operations.

Nazara Technologies will provide further updates on the acquisition as it progresses through the final approval and regulatory clearance stages.

HBL