MTG currently has a strong balance sheet thanks to the previously announced completion of the divestment of ESL Gaming. The group has the intention to return at least 40 percent of the net proceeds to its shareholders, with the rest of the proceeds to be used to strengthen MTG’s position in the global gaming market and continued execution of strategy.
The group’s Board of Directors has therefore decided to launch a new share repurchase program. This program is part of the commitment to return approximately at least 40% of the net proceeds from the divestment of ESL Gaming to the group’s shareholders. This intention spans the SEK 125 million share repurchase program in May and June, and the ongoing SEK 2,767 million share redemption plan. The ambition is to repurchase shares for a total amount of up to SEK 200 million, until 20 October 2022.
The bought back shares shall be cancelled through a reduction of the group’s share capital. This requires an approval from the Annual General Meeting, and the Board of Directors intends to seek such approval at the Annual General Meeting 2023. The value of the program (if utilized in full) equals 2.2 percent of MTG’s current market cap (calculated on the basis of all MTG A and B shares excluding the shares held in treasury and redemption shares).
The Board of Director's view is that the share repurchase program will provide a flexible and a sustainable increase in the value created for MTG’s shareholders.
The share repurchase program is being carried out in accordance with the Market Abuse Regulation (EU) No 596/2014 (”MAR”) and the Commission Delegated Regulation (EU) No 2016/1052 (the “Safe Harbour Regulation”). The share repurchase program will be managed by Nordea Bank Abp which will make its trading decisions regarding the timing of the repurchase of MTG’s shares independently of MTG.
The share repurchase program is subject to the following terms:
1The shares of MTG have following the AGM of 2022 been subject to a share split 2:1 as a first step in the share redemption plan. As a final step in the share redemption plan the number of shares will be restored to the number prior to the AGM of 2022 following a share redemption. Thus, the maximum number of shares that may be repurchased following this step will be 4,018,414.
Statements made in the press release relating to future status or circumstances, including future performance and other trend projections are forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There can be no assurance that actual results will not differ materially from those expressed or implied by these forward-looking statements due to many factors, many of which are outside the control of MTG.
For more information:
Anton Gourman, VP Communications and IR Direct: +46 73 661 8488, email@example.com
MTG (Modern Times Group MTG AB (publ.)) (www.mtg.com) is an international mobile gaming group that owns and operates gaming studios with popular global IPs across a wide range of casual and mid-core genres. The group is focused on accelerating portfolio company growth and supporting founders and entrepreneurs. MTG is an active driver of gaming industry consolidation and a strategic acquirer of gaming companies around the world. We are born in Sweden but have an international culture and global footprint. Our shares are listed on Nasdaq Stockholm (‘MTGA’ and ‘MTGB’).