STOCKHOLM: Saudi Arabia’s sovereign wealth fund is taking an 8.1% stake in gaming group Embracer via a direct share issue as part of a push into the games and esports industry.

Sweden’s Embracer said in a statement it was issuing 99.9 million shares at a price of 103.47 per share to Savvy Gaming Group which is owned by Saudi Arabia’s $600 billion Public Investment Fund (PIF), raising 10.3 billion Swedish crowns ($1.05 billion).

Upon settlement the fund would hold 8.1% of shares and 5.4% of votes in Embracer, it said.

China approves 60 new games, sparking hopes tech crackdown is ending

PIF has been increasing its exposure to the video gaming industry, most recently it took a 5% stake in Nintendo, in May.

Embracer works under a model where founders of acquired companies run their firms as independent businesses with full creative and operational freedom.