KUALA LUMPUR (Oct 3): Sedania Innovator Bhd is venturing into the electronic sports or esports space via a special purpose vehicle that it will take a 42.55% stake in, to launch a global esports tournament and media network.

The technology company, which is presently involved in fintech, greentech, the Internet of Things and big data analytics, has inked a share subscription agreement with iCandy Interactive Ltd and the former chief of eSports.com AG, Michael Broda, to take part in the venture.

iCandy will also have a 42.55% in the SPV — Esports Pte Ltd (ESPL), which was incorporated in Singapore — while Broda will own the remaining 14.9%. The esports tournament and media network it is working on is called eSports Pro League, which will be launched across 16 countries, covering Asia, Europe and America, said Sedania in a statement today.

"The shareholders have agreed to make an initial contribution of S$235,000 into ESPL. Both Sedania and iCandy will contribute S$100,000 each, while the remaining S$35,000 will be contributed by Michael.

"Sedania and iCandy are granted the option of first right of refusal to invest a further sum of S$300,000 each into ESPL for the next three financing rounds, subject to terms and conditions to be mutually agreed upon by the parties involved in the next three financing rounds respectively," Sedania said.

Sedania group managing director Datuk Azrin Mohd Noor is confident that the partners' collective expertise and experience — iCandy has been involved in mobile games and digital entertainment while Broda was the CEO of eSports.com — will enable them to build the esports industry in Malaysia and the region.

“The proposed venture is also in line with our group’s expansion plan in esports and esports-related business. We are planning to launch the eSports Pro League in early 2020. ESPL is currently in its building phase for its online tournament platform. The first season is anticipated to take place from February to December next year,” Azrin added.

Sedania shares ended 0.5 sen or 4% lower at 12 sen today, giving the group a market capitalisation of RM29.81 million. The stock has retreated nearly 23% over the past year.