Split plan drives Embracer shares to four-month high

JPMorgan Emerging Europe Middle East & Africa Securities

22/04/2024 08:23

** Shares in Embracer rise 11% after the Swedish gaming
group on Monday said it plans to split into three separate
listed companies, secure new financing to cut debt
    ** The three new entities would be called Asmodee Group,
Coffee Stain & Friends, and Middle-earth Enterprises & Friends,
with the last one intended to remain within Embracer Group,
according to the company's statement 
    ** The company's CEO Lars Wingefors said he intends to
remain a long-term and active owner of all three entities
    ** "While this was unexpected, we view the announcement
positively as it could result in an improved valuation," Redeye
analyst Hjalmar Ahlberg says 
    ** Ahlberg adds that the split-up should provide investors
clarity on their investments, potentially boosting the valuation
of individual companies
    ** As part of the separation process, Embracer has, through
Asmodee Group, secured a EUR 900 million financing agreement to
repay its existing debt 
        ** The stock, poised for its best day in two months, is
on track for its highest since Dec. 2023
  





 (Reporting by Jesus Calero)
 ((Jesus.calero@thomsonreuters.com))