Modern Times skyrockets on $1.05 bln sale of e-sports unit

Modern Times MTG AB

25/01/2022 08:11

** Shares in Modern Times Group  MTGb.ST  rise 48% after the
Swedish gaming company sold its e-sport unit in a $1.05 billion
deal  urn:newsml:reuters.com:*:nL8N2U463A
    ** MTG says the transaction would bring around $875 million
in net gains and the company would return around 40% of the
proceeds to shareholders
    ** "Following the transaction, MTG will focus fully on
accelerating growth in its pure-play gaming business," the
company adds
    ** "This implies a value for the Esports division of c.
SEK68 per share, above our SOTP estimate of SEK55", Citi
analysts say
    ** "The deal will leave the remaining MTG with a more
coherent, pureplay investment case focused on mobile gaming",
Citi adds

    


 (Reporting by Boleslaw Lasocki)
 ((boleslaw.lasocki@tr.com))