SEALAND BUYS CONTROLLING STAKE IN CHINESE MOBILE GAMES DEVELOPER

LONDON (Alliance News) – Sealand Capital Galaxy Ltd on Wednesday said it has agreed to buy a 55% controlling stake in Guangzhou Ruiyou Information Technologies Co for a total consideration equal to GBP139,000, turning the business into a subsidiary.

Sealand has agreed to pay CNY1.2 million for the stake, which will lead to Sealand appointing two directors to the board to join one other director, with further external appointments eyed in the future.

The Chinese firm is a mobile games developer and distributor which has been active since 2015. It primarily develops apps for the personalisation of user desktop and mobile devices, as well as being a distributor and publisher of over 20 mobile gaming apps for third party developers including Huawei Technologies Co Ltd, Sealand said.

“A cooperation agreement was entered into between Rightyoo and Huawei in 2015 and will remain valid and continue beyond the subscription,” said Sealand.

Guangzhou Ruiyou, also known as Rightyoo, will list its mobile gaming content on Huawei’s international platform ‘inTouch’, with a view to distributing Rightyoo’s content globally through Huawei’s established oversea channels. inTouch operates in eight regional centers with over 70 carriers. Its global distribution network covers over 30 countries in Latin America, Africa, Southeast Asia and the Middle East.

“In addition to being able to leverage inTouch’s global distribution network, Rightyoo also has engaged in strategic partnerships with over 60 content providers and 16 distributors worldwide,” said Sealand.

“In view of Rightyoo’s extensive geographical reach and diversified strategic partnerships, the Subscription is expected to expand the company’s market presence and enhance its overall competitiveness in the social media sector, bringing with it strong growth potential and momentum,” Sealand added.

Sealand shares were 1.2% higher on Wednesday at 189.18 pence.

By Joshua Warner; [email protected]; @JoshAlliance

Copyright 2017 Alliance News Limited. All Rights Reserved.