July 19, 2021 — Limassol, Cyprus — Nexters, an international game development company that is in the process of closing a business combination with a SPAC company Kismet Acquisition One Corp (Nasdaq: KSMT, KSMTU, KSMTW), saw continued success in its approach to bring core gaming experiences to casual audiences as it announced further growth of Bookings in Q2. Nexters also surpassed the minimum cash condition required under the business combination agreement as a result of PIPE funding commitments, the transaction is now expected to close by the end of Q3 2021.
The Q2 results feature strong financial and operating performance after following sustainable growth for the beginning of the year. Fueled by successful marketing initiatives, Nexters reached $154 million in Bookings in Q2 2021 - 40% higher year-over-year for the same period in 2020.
This rapid growth came with an increase of monthly paying players by 43% year-over-year to approximately 400,000 paying players. Despite the significant inflow of new payers, who tend to spend less in the beginning of their lifespan, the blended average bookings per paying player kept relatively flat at $125.
“Our savvy marketing and fun games are landing well with a growing audience who haven’t stopped playing games,” Andrey Fadeev, Nexters CEO said. “These successes are further fuel for our readiness to go public.”
Additional investment has been secured thus letting Nexters to meet the minimum cash condition required under the business combination agreement. $50 million will be invested via PIPE (Private Investment in Public Equity) by Mubadala Investment Company and VPE Capital. The PIPE investment along with $50 million from SPAC sponsor Kismet Sponsor Limited provides the required minimum of $100 million.
Faris Al Mazrui, Head of Mubadala’s Russia and CIS Investment Program, said: “We are excited to establish this partnership with Ivan Tavrin and Kismet through this investment into Nexters. The company fits well within our expanding portfolio of tech companies that we believe will deliver long term and sustainable returns. Nexters is led by a strong and visionary management team, and is well-positioned to benefit from the ever-evolving games market.”
The secured investments provide transaction security for closing the deal, which is now expected to be completed by the end of Q3 2021, subject to regulatory approval and other customary conditions. After closing of the business combination, Nexters is expected to trade on Nasdaq Global Select Market under the “GDEV” ticker symbol.
On January 31, Nexters and Kismet Acquisition One Corp (“Kismet”) entered into a definitive business combination agreement that will result in Nexters becoming a publicly-listed company on Nasdaq. The transaction, which placed Nexters at an enterprise value of $1.9 billion, will be funded by approximately $250 million of cash held in trust by Kismet, subject to potential redemptions, as well as the additional $50 million investment by the SPAC Sponsor, Kismet Sponsor Limited, and $50 million in the aggregate from PIPE investors Mubadala Investment Company and VPE Capital. The transaction is expected to close by the end of Q3 2021. Please find more information about this business combination at: https://nexters.com/investors_content
Nexters is an international game development company which strives to introduce the joy of core gaming experiences to casual players. Thanks to such hit games like Hero Wars, Throne Rush, and others the company reached over 100 million installs worldwide and became one of the top five independent mobile game companies in Europe. Headquartered in Cyprus, Nexters is built upon a team of 500+ inspired game developers. Please find more information about Nexters at: https://nexters.com and follow Nexters on LinkedIn
PR: Andrey Akimov | Chief Communications Officer
About Mubadala Investment Company
Mubadala Investment Company is a sovereign investor managing a global portfolio, aimed at generating sustainable financial returns for the Government of Abu Dhabi.
Mubadala’s $243.4 billion (AED 894 billion) portfolio spans six continents with interests in multiple sectors and asset classes. We leverage our deep sectoral expertise and long-standing partnerships to drive sustainable growth and profit, while supporting the continued diversification and global integration of the economy of the United Arab Emirates.
Headquartered in Abu Dhabi, Mubadala has offices in London, Rio de Janeiro, Moscow, New York, San Francisco and Beijing.
For more information about Mubadala Investment Company, please visit: www.mubadala.com
About VPE Capital
VPE Capital is a specialist emerging market asset manager focused on investing institutional funds to enhance risk weighted returns with a focus on the CIS region.
This press release shall neither constitute an offer to sell or the solicitation of an offer to buy any securities, nor there any sale of securities in any jurisdiction in which the offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
Use of Projections. The financial projections, estimates and targets in this press release are forward-looking statements that are based on assumptions that are inherently subject to significant uncertainties and contingencies, many of which are beyond Kismet’s and Nexters’ control. Although all financial projections, estimates and targets are necessarily speculative, Kismet and Nexters believe that the preparation of prospective financial information involves increasingly higher levels of uncertainty the further out the projection, estimate or target extends from the date of preparation. The assumptions and estimates underlying the projected, expected or target results are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the financial projections, estimates and targets. The inclusion of financial projections, estimates and targets in this press release should not be regarded as an indication that Kismet and Nexters, or their representatives, considered or consider the financial projections, estimates and targets to be a reliable prediction of future events.
Additional Information; Participants in the Solicitation. Nexters has filed a registration statement with the SEC that includes a preliminary proxy statement of Kismet and a preliminary prospectus of Nexters (the “proxy statement/prospectus”). The definitive Proxy Statement/Prospectus will be mailed to Kismet’s shareholders as of a record date to be established for voting on the contemplated business combination when it becomes available. Kismet shareholders and other interested persons are urged to read the proxy statement/prospectus and any other relevant documents filed with the SEC because they contain important information about Kismet, Nexters and the contemplated business combination. Kismet shareholders will be able to obtain a free copy of the proxy statement/prospectus, as well as other filings containing information about Kismet, Nexters and the contemplated business combination, without charge, at the SEC’s website located at www.sec.gov.
Kismet, Nexters and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from Kismet’s shareholders in connection with the proposed transaction. A list of the names of such directors and executive officers and information regarding their interests in the business combination are contained in the proxy statement/prospectus. You may obtain free copies of these documents as described in the preceding paragraph. This press release does not contain all the information that should be considered in the contemplated business combination. It is not intended to for many basis of any investment decision or any decision in respect to the contemplated business combination.
Forward Looking Statements. Certain statements in this press release may constitute “forward-looking statements” for purposes of the federal securities laws. Such statements are based on current expectations that are subject to risks and uncertainties. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements.
The forward-looking statements contained in this press release are based on Kismet’s and Nexters’ current expectations and beliefs concerning future developments and their potential effects on Kismet and Nexters. There can be no assurance that future developments affecting Kismet and Nexters will be those that Kismet and Nexters have anticipated. Forward-looking statements involve a number of risks, uncertainties (some of which are beyond Kismet’s and Nexters’ control) or other assumptions. You should carefully consider the risks and uncertainties described in the “Risk Factors” section of the registration statement on Form F-4 relating to the business combination, filed by Nexters and other documents filed by Nexters and Kismet from time to time with the SEC. Should one or more of these risks or uncertainties materialize, or should any of Kismet’s or Nexters’ assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Kismet and Nexters undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
TAV Airports and Kazakhstan Infrastructure Fund have completed the buy-out of Almaty Airport, Kazakhstan’s main aviation gateway and an important junction on the modern “Silk Road”. The capacity of the airport will be doubled with a USD 200M investment. Almaty is the 15th airport in TAV’s global network.
A member of Groupe ADP, TAV Airports took over operations in Almaty, the economic capital and the busiest airport of Kazakhstan. TAV is now 85% beneficial owner of Almaty Airport and associated fuel and catering businesses, and Kazakhstan Infrastructure Fund, managed by VPE Capital and backed by Kazyna Capital Management, holds the remaining 15% stake. Almaty is the first airport in TAV’s portfolio where the company owns the airport instead of a time limited concession.
Located in the southeast of the country and an important stop on the ancient Silk Road, today Almaty is a strategical junction along the “One Belt One Road” project, connecting China-Central to West Asia, Europe and Africa. Kazakhstan leads Central Asia in economic growth and generates roughly 60% of the region’s GDP.
TAV Airports President & CEO Sani Şener said:
“We’re happy to add Almaty Airport, which is a main transit hub between Asia and Europe, to our portfolio. Almaty is strategically located on ‘the modern Silk Road’, established from China to Europe and Africa through air transport. Kazakhstan is the largest country in the region -both geographically and economically- and Almaty is the largest city in the country producing 20% of Kazakhstan’s GDP.
“We believe there’s a significant potential for growth in Almaty Airport, and drawing upon our extensive know-how, we’ll work towards realizing this potential to the fullest. As part of the largest airport management group globally, we’ll be promoting Almaty and Kazakhstan as the business capital of the region, as a country with a rich cultural heritage and diverse tourism opportunities. Our expertise in route development will help to increase the connectivity of Almaty to the world. As an example, in Georgia we doubled the number of destinations and increased passenger traffic seven fold in a decade.
“Our aim is to contribute to the economic and social development of Almaty region, creating employment and facilitating a global reach for local businesses. I would like to underline the supporting approach towards foreign investors in Kazakhstan and thank government officials, our partner, our lenders and employees who made this process as smooth as possible.”
Ainur Kuatova, Chief Executive Officer of Kazyna Capital Management, said:
“Kazyna Capital Management’s mission is to promote sustainable economic development in the Republic of Kazakhstan, and this project does just that – at scale. We’re proud to be part of this milestone project that brings more than USD 600M in foreign capital along with leading international expertise into a key infrastructure asset. For every dollar that KCM is investing, foreign partners are investing more than 20 dollars.”
Roland Nash, Partner at VPE Capital, said:
“Today TAV and the Kazakhstan Infrastructure Fund kick off a new era as owners of Almaty International Airport, with immediate plans for a major expansion and modernization of the facility. This project represents one of the largest foreign direct investments into Kazakhstan outside of the natural resources sector. The expansion and renovation of the airport will deliver significant economic and social benefit for the Republic of Kazakhstan, with the new terminal expected to increase total passenger capacity to at least 14 million passengers a year. We are proud of our role as a major driver of this project and a catalyst for attracting international capital and expertise into an important infrastructure asset in Kazakhstan.”
Regional cargo hub
The base of the flag carrier Air Astana, Almaty Airport served 6.4 million passengers in 2019, with a 13% increase compared to the previous year. The airport announced net profits in 2020 despite the traffic drop to 3.6 million in 2020 due to travel restrictions brought by COVID-19.
In addition to Air Astana, Fly Arystan, SCAT Airlines and Qazak Air also use Almaty as their base. Pre-pandemic, Almaty was a major regional transportation hub for 35 passenger and 9 cargo airlines serving multiple destinations. Air Astana provided almost half of the passenger traffic while Turkish Airlines led in cargo.
A new terminal investment
First opened in 1935, Almaty is the busiest hub in Central Asia. The airport has two runways.
The previously agreed purchase price of USD 415 million is revised down to USD 365 million taking into account the traffic decrease due to the pandemic. Depending on the recovery of the traffic to pre-pandemic levels, the consortium will pay the additional USD 50 million in coming years.
TAV will invest around USD 200 million to build a new international terminal which will double the airport’s capacity to more than 14 million passengers annually. The investment is planned to be completed in less than three years.
The consortium received approval from the International Finance Corporation (IFC) and the European Bank of Reconstruction and Development (EBRD) to finance 50% the acquisition and 100% of the new terminal investment with a loan. The financing is expected to be closed in the 3rd quarter of 2021.
About TAV Airports
TAV Airports provides integrated services in all areas of airport operations, with a global footprint at 91 airports in 26 countries. A member of Groupe ADP, TAV Airports is part of the leading airport management platform globally. Through its subsidiaries, TAV is active in airport service businesses, including duty-free, food and beverage, ground handling, IT, private security and commercial area management. The company is quoted on Istanbul Stock Exchange.
About Kazakhstan Infrastructure Fund and VPE Capital
Kazakhstan Infrastructure Fund C.V. invests in infrastructure projects primarily in the Republic of Kazakhstan with the aim of contributing to the country’s long-term economic development and acting as a catalyst for international co-investment. Kazakhstan Infrastructure Fund is managed by VPE Capital, a specialist emerging market asset manager focused on investing institutional funds to enhance risk weighted returns with a focus on the CIS region. Kazakhstan Infrastructure Fund’s main investor is Kazyna Capital Management.
For VPE Capital
Quinn Martin, Frontier PR
+1 646 629 5502
Sber announces participation in a private equity fund.
Sber in cooperation with a leading Middle East sovereign wealth fund announces its commitment as a cornerstone investor into an investment fund managed by VPE Capital focused on making private equity investments into Russia. The agreed partnership combines the strengths of all parties to create a market-leading Russia-focused private equity platform in the region. On behalf of Sber, SberInvest will act as a party to the fund.
The fund intends to make sector-agnostic equity and equity-linked investments into businesses operating predominantly in Russia with specific focus on growth capital opportunities.
Anatoly Popov, Deputy Chairman of the Executive Board, Sberbank:
“I am happy that our joint fund will help medium-sized enterprises across Russia get access to equity capital and achieve their ambitious goals. Following Sber’s initial commitment of $100 million, the fund’s current AUM stands in excess of $200 million. With the intention of reaching $500 million AUM, our fund will be open to accept additional commitments from third party investors. I am sure that the unparalleled asset and client base of Sber combined with the deep investment expertise and the asset management experience of our partners will bring new impulse to the Russian private equity market.”
Roman Kudryashov, Partner of VPE Capital:
“The private equity space in Russia offers a unique opportunity to put capital to work into dynamic businesses with strong management which, particularly in the current challenging economic environment, require growth capital to meet their investment plans. VPE Capital has a 10-year history of working with global institutions to invest into Russia, and we are delighted to be able to work with one of the very strongest financial institutions active in Russia today. We believe we have a tremendous platform to invest equity capital to grow businesses on behalf of our investors and develop the private equity business in Russia.”
SberInvest (Sberbank Investments LLC) is a wholly owned subsidiary of PJSC Sberbank and part of its Corporate and Investment Unit. Its core operations include financial solutions and structuring through equity and mezzanine instruments, which it offers to the bank’s customers.