Evolution Launches €2 Billion Share Buyback Programme

(AsiaGameHub) –   Evolution AB has received shareholder approval at its Annual General Meeting on April 24 to initiate a share buyback programme valued at €2 billion.

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Key Details

• Evolution is authorized to repurchase up to €2 billion worth of its shares.
• A €300 million revolving credit facility is in place to ensure liquidity.
• The company continues to navigate legal and regulatory challenges in New Jersey and the UK.

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Buyback Program Aligns with Evolution’s Capital Structure Review

Evolution stated that the share buyback is intended to optimize its capital structure by reducing share capital and enhancing shareholder value. The company’s board has granted authorization for these repurchases to occur on Nasdaq Stockholm or other recognized exchanges.

The execution of these repurchases will be managed by an independent investment firm or credit institution, which will determine the timing without direct oversight from Evolution. The program is set to continue until the full €2 billion allocation is utilized, until further notice, or potentially until the Annual General Meeting in 2027.

Under Swedish regulations, Evolution is permitted to hold a maximum of 10% of its issued shares. With 199,226,613 shares currently outstanding and no treasury shares held, the company can buy back up to 19,922,661 shares before reaching this limit.

Should the company’s holdings approach this threshold, the board reserves the right to convene an extraordinary general meeting. This would provide shareholders with the opportunity to cancel the repurchased shares, thereby creating capacity for further buybacks under the existing framework.

This capital return initiative follows a strategic shift by Evolution towards expanding its operations beyond Europe. In the first quarter, growth in North America and Latin America was a significant contributor to the company’s performance, with regulated markets accounting for 48% of its total revenue.

Concurrently, Evolution is still addressing ongoing legal and regulatory matters. The company is involved in litigation in New Jersey concerning allegations that its games were made available through unauthorized operators in restricted territories. Evolution has refuted these claims and has sought to include Playtech in a related defamation lawsuit, alleging a deliberate and commercially motivated campaign orchestrated by Black Cube.

The Superior Court of New Jersey will make a determination on whether the amended complaint can proceed. In parallel, the UK Gambling Commission is continuing its review of the connections between Evolution’s games and unlicensed websites operating within the UK market.

Evolution has also secured a €300 million senior unsecured revolving credit facility, arranged with JP Morgan SE and Citibank Europe plc. This facility has an initial term of three years, with the option for two one-year extensions, and will provide the company with standby liquidity throughout the duration of the buyback period.