Kambi gains ‘increased flexibility’ with new buyback programme

Kambi Group plc has announced that it will further utilise the buyback mandate received at the Extraordinary General Meeting on 19 June 2023. 

Following on from previous programmes undertaken since the EGM, the Stockholm-listed betting and gaming supplier’s Board of Directors have decided that the buyback programme will run until 20 May 2024, with a total of up to €4m.

The objective of the programme is to achieve added value for Kambi’s shareholders and to give the Board ‘increased flexibility’ with Kambi’s capital structure by reducing the capital.

Anders Ström, Chair of the Board of Directors, asserted that the Board’s primary responsibility is to generate value for Kambi’s shareholders. 

He added: “This commitment is reflected in our capital allocation priorities, which encompass our share buyback programmes designed to enhance shareholder value.”

In addition, subject to shareholder approval at the 2024 Annual General Meeting on 21 May 2024, Kambi has also shared its intention to communicate a further longer-term strategic framework for share buybacks.

Furthermore, the company has entered what it described as an irrevocable agreement with Carnegie Investment Bank AB (Carnegie) to conduct the share repurchases on its behalf. 

“The acquisition of shares shall take place on one or several occasions on Nasdaq First North Growth (“First North”) market in Stockholm and Carnegie will make its trading decisions in relation to Kambi’s shares independently of and without influence by Kambi,” the group said in a report.

According to the EGM resolution, the maximum number of shares that may be acquired during this mandate is 3,127,830, which was equivalent to 10% of total shares in the Company at that time. 

The company’s authority to buyback shares will expire at the aforementioned annual general meeting, whilst acquisitions can be made as of today, (18 March 2024).

Notably, in recent weeks, Kambi also declared that it has achieved a ‘stronger foundation for growth’, following a difficult close to year-end trading which impacted its full-year 2023 results.

Publishing its fourth quarter and FY2023 results this morning, the group registered a 23% decline in Q4 revenues to €44.3m (Q42022: €58m).