Remedy Entertainment plans to borrow money from the Chinese giant Tencent. The company has decided to secure an unsecured loan for €15 million at 8% annual interest for five years.
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Remedy stated that it will use these funds for further development of its games. The loan will allow it to “fully realize the potential of projects currently in development” and make it easier to publish its games.
According to the terms of the deal, Tencent will have the option to convert the loan into Remedy shares in three years, at a rate of €27.2 per share. This represents a 63.86% premium over Remedy's current stock price. If Tencent opts for this, it will acquire 5.98% of the company’s shares. Notably, Tencent is already a major shareholder in Remedy, controlling 14.8% of the Finnish developers' shares as of April 2024, as highlighted here.
Remedy has already reached a preliminary agreement with Tencent. However, the deal can only be finalized after it receives approval from Remedy shareholders at an extraordinary meeting scheduled for October 24.