MTG currently has a strong balance sheet thanks to the previously announced completion of the divestment of ESL Gaming. The net proceeds from the divestment are expected to amount to approximately USD 875 million (equivalent to SEK 8,340 million). 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.
MTG's Board of Directors has therefore decided to launch a share repurchase program. This program is part of the commitment to return money to shareholders and to simultaneously optimize the capital structure of the company. The ambition is to repurchase shares for a total amount of up to SEK 125 million, until the Annual General Meeting 2022.
The bought back shares shall be cancelled through a reduction of the share capital. This requires an approval from the General Meeting, and the Board of Directors intends to seek such approval at the Annual General Meeting 2022. The value of the program (if utilized in full) equals 1.1 percent of MTG’s current market cap (calculated on the basis of all MTG A and B shares excluding the shares held in treasury).
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 Morgan Stanley Europe SE 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:
For more information:
Anton Gourman, VP Communications 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’).