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:
- Share repurchases can be made between 2 May 2022 and 7 June 2022. MTG will repurchase shares for a maximum amount of SEK 125 million during this period.
- Repurchases are to be made on Nasdaq Stockholm and in accordance with Nasdaq Stockholm’s Rule Book for Issuers, MAR and the Safe Harbour Regulation.
- Repurchases of shares on Nasdaq Stockholm are to be made at a per-share price within the registered interval for the going rate at any given time, which denotes the interval between the highest purchase price and the lowest selling price.
- According to the authorisation given at the Extraordinary General Meeting on 22 March 2022, MTG’s holding of its own shares may not at any time exceed 10 percent of the outstanding shares in MTG. The total number of outstanding shares currently amounts to 117,015,055. MTG currently holds 304,880 B-shares and 6,324,343 C-shares in treasury (6,629,223 own shares in total) which means that a maximum of 5,072,282 shares may be repurchased until 7 June 2022.
- Payment for the shares will be made in cash.