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Blue Star Capital adds glamour to mix as David Beckham's Guild eSports floats

Snapshot

  • Blue Star is a tech investor with stakes in e-payments, e-sports and micropayments
  • Recently invested into six e-sports franchises
  • Biggest holding is the stake in micropayments group SatoshiPay
Blue Star Capital - Blue Star Capital branches out into e-sports

Quick facts: Blue Star Capital PLC

Price: 0.2049 GBX

AIM:BLU
Market: AIM
Market Cap: £8.3 m
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What it does

Blue Star Capital PLC (LON:BLU) is to invest £150,000 each into six e-sports teams around the world.

These companies are based in the UK, India, the US, Singapore, Australia and Canada and participate in a variety of sports.

Blue Star said: "Each of the companies will create or acquire a competitive esports franchise to generate revenue from tournament winnings, digital marketing opportunities, sponsorship, membership, merchandise and promotional tours and events."

Micropayments platform SatoshiPay (Blue Star 27.9%) is currently valued at £4.6mln.

Biometrics payments provider Sthaler (1%) has developed the biometric Fingopay product, which is being trialled in Manchester, at certain universities and festivals.

In April, it invested £57,000 into Canadian mobile game group Leaf Capital.

How it's doing

SatoshiPay has just launched a joint venture with Axel Springer to enable readers to pay for the German publisher’s content using an e-wallet.

The company is also working on a cross-border payment system to allow companies instantly to transfer funds around the world.

In September, Guild Esports announced its intention to float on the main market of the London Stock Exchange.

Guild, in which Blue Star holds 11.7% of the issued share capital, expects to be the first esports franchise to join the LSE main market. 

It plans to create a leading global franchise by establishing its own esports teams to compete in major esports tournaments and a player training and scouting infrastructure modelled on the talent academies pioneered by Premier League football teams over many years.

David Beckham, a founding shareholder, intends to use his global influence and following to support the development of the company's brand and business.

What the boss says: Tony Fabrizi

"Guild has made exceptional progress since its launch last year and the planned listing represents an important step in its ambition of becoming one of the world's top ten esports franchises within three years."

Video

 

Inflexion points

  • Canadian entrepreneur David Lew has become chairman
  • SatoshiPay is expanding into the vast cross-border payments business
  • E-sports franchises become established as demand for virtual sports increases

 

What the broker says: Ed Stacey, Proactive Research

"A strong investment performance could potentially be repeated going forward and that this should increasingly translate into positive performance for the Blue Star share price.

Factors supporting this view include:

  • Zero debt on the balance sheet, and an improved basis for raising future capital to take advantage of opportunities that may arise.
  • Historic levels of administrative cost were sharply reduced when Tony Fabrizi became CEO, and remain low at around £350k.
  • A broadened pool of management expertise, bringing experience from private equity, corporate finance and media.
  • Positive track record for the current portfolio of assets.

"We argue that sustained performance could justify Blue Star shares trading at a premium to Net Asset Value.."

Read: Blue Star Capital initiation

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