The Malta-based superaffiliate which trades on the Nasdaq Stockholm exchange aims to increase its share price by subsequently cancelling any repurchased shares.
Regulation and legal conditions mean that Catena is limited to owning 10% of its shares on the stock exchange. It currently owns 5.6%, leaving a maximum of 4.4% that can be repurchased.
In addition, the maximum price for all the shares repurchased must not exceed SEK100m (£7.9m/€8.9m/$9.6m).
Catena shares are currently trading at SEK439, up just over 1% from yesterday.
Shares can only be purchased within the price interval recorded on Nasdaq Stockholm, which means a figure between the highest buying price and the lowest selling price. The repurchases must be made in cash.
Catena may be sold
This news comes days after it was announced that Catena has appointed Carnegie Investment Bank AB as a financial advisor. The bank will assist the business in assessing strategic options for the potential sale of the remainder of its business.
Under the arrangement, Carnegie will participate in talks with third parties that have shown interest in acquiring certain assets from the affiliate company.
Last month, the affiliate agreed to sell off AskGamblers to Gaming Innovation Group for €45.0m, after iGB in November reported that a deal to offload the flagship brand was close.
This emerged following a strategic review that launched in May of last year, in which Catena explored the possibility of a sale.
This review was later expanded as Catena considered divesting all its European betting and igaming assets in order to focus on North American markets, with the business having confirmed that 25% of all its European staff base was laid off as part of the process.
Catena also recently announced record revenue from the Ohio sports betting launch, which went live on 1 January 2023.
Original article: https://igamingbusiness.com/finance/catena-to-buy-back-up-to-sek100m-worth-of-shares/
