Both Innova and Toadman Interactive to be affected.
As the Russian government continues committing vast war crimes in Ukraine with the help of Belarus and other minor actors, the crushing might of western sanctions are not doing the country any benefits. Over the last month we have seen a few companies completely ending operations in the area including Wargaming. The latest to join that coven of reasonable people is Enad Global 7, our good pals EG7.
In an announcement package shipped out to shareholders today, EG7 announced its intention to sell subsidiary Innova. Innova’s acquisition will manifest as a management buyout and run to the tune of 32 million Euro. EG7 acquired Innova in March 2021 and notes the company had a negative impact on income that year to the tune of 800 million SEK which might explain why the company is getting the boot. Certainly not the high praise EG7 has given them in previous investor meetings.
“We’ve been monitoring our current business operations in Russia the past few weeks and after careful evaluation, we concluded that parting ways with Innova would benefit both parties. Upon completion of the transaction, EG7 will no longer have operations in Russia and no further exposure to continuing uncertainties in the region. The relocation of the Toadman team also creates an important site for continued growth,” said Ji Ham, Acting CEO, EG7. “This decision has minimal impact on our group companies outside of Russia / CIS. Our utmost priority is to ensure that the Innova and Toadman teams have our full support while we help them transition through this process.”
Meanwhile Toadman Interactive are not getting the boot, and will instead have their Russian operations airlifted out of the country and moved somewhere in Western or Eastern Europe. Toadman’s upcoming titles include Block n Load 2 and EvilvEvil.
Both of these decisions contingent on a general shareholders meeting to take place at a later date, with the Innova sale also to be approved by Russian authorities.