Viaplay plunges as rescue plan will bring stock's value close to zero

Viaplay AB (publ)

01/12/2023 09:05

(Adds Jefferies comments, milestones)
    ** Shares in Viaplay  VPLAYb.ST  plunge around 80% after the
Swedish streaming company unveiled a rescue plan that includes a
share issue at a 96% discount
    ** Viaplay is the most traded stock in Stockholm, with the
shares heading for their worst day ever
    ** Under the rescue plan, the company will raise new equity
and restructure its debt, wiping out most of the value for
existing shareholders
    ** Viaplay says it will release 4 billion shares worth 1
Swedish crown each, vs Thursday's closing price of SEK 23.68
    ** "In the process, the current equity value is essentially
written down to nil," Jefferies says
    ** The broker notes the low execution risk of the plan, with
all stakeholders involved in the negotiations
    ** Jefferies adds Viaplay will swing from a net debt of 3.3
billion crowns ($315.5 million) to net cash
    ** The group also reports Q3 operating loss of 538 million
crowns vs loss of 100 million a year ago
    ** The stock is down 97% year-to-date

($1 = 10.4607 Swedish crowns)

 (Reporting by Boleslaw Lasocki)
 ((boleslaw.lasocki@thomsonreuters.com; +48 58 769 66 00;))