Kindred Group, a prominent player in the online gambling industry, has announced its decision to commence a share buy-back program, utilizing the authorization received at the Extraordinary General Meeting held on May 17, 2023.
The program aims to return excess cash to shareholders in alignment with Kindred’s distribution policy. Share repurchases will be conducted between May 23, 2023, and June 22, 2023.
Returning Value to Shareholders
In response to the mandate received at the Extraordinary General Meeting, Kindred Group’s Board of Directors has taken the strategic step to initiate a share buy-back program. The primary objective of this program is to provide value to the company’s shareholders by returning excess cash.
Share repurchases will be executed on Nasdaq Stockholm in accordance with the regulations set forth by the Nasdaq Nordic Main Market Rulebook for Issuers of Shares, the Maltese Companies Act, and the EU Market Abuse Regulation.
The shares will be bought at a price per share within the determined interval, representing the range between the highest buying price and the lowest selling price. The payment for the repurchased shares will be made in cash.
Strategic Limits and Intentions
Kindred Group is committed to maintaining transparency throughout the process. Any share repurchases will be promptly notified to Nasdaq Stockholm, ensuring that stakeholders are informed about the transactions.
To ensure a balanced approach, there are certain limitations and intentions guiding Kindred Group’s share repurchase program. The maximum number of shares or SDRs (Swedish Depositary Receipts) that can be repurchased is 23,000,000. The company’s holdings of its own shares or SDRs must not exceed 10% of the total outstanding shares at any given time.
Currently, Kindred Group has 230,126,200 issued shares, with a holding of 14,445,479 of its own shares or SDRs.
Implications for the iGaming Industry
Kindred Group’s decision to initiate a share repurchase program carries important implications for the iGaming industry:
- Shareholder Value: By returning excess cash to shareholders, Kindred Group demonstrates its commitment to providing value and rewarding its investors trusting the iGaming industry. The share repurchase program offers an opportunity for shareholders to benefit from the company’s success.
- Financial Flexibility: Implementing a share buy-back program allows Kindred Group to efficiently manage its capital structure and optimize its financial resources. This strategic move enhances the company’s ability to adapt and pursue growth opportunities in the dynamic online gambling market.
- Market Confidence: The initiation of a share repurchase program can bolster market confidence in Kindred Group‘s financial stability and long-term prospects. By investing in its own shares, the company signals its belief in its future growth and value creation potential.
In conclusion, Kindred Group’s share repurchase program signifies a proactive approach to delivering value to shareholders while ensuring financial flexibility and market confidence. This strategic move reflects the company’s commitment to creating a sustainable and successful future in the online gambling industry.