Paradox Interactive to buy back some of its shares
Paradox Interactive announced the launch of a share buyback program. This program will continue until May 2027.
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In a note to investors, Paradox Interactive stated that it plans to spend no more than 200 million Swedish kronor as part of the program—which is $21 million at the current exchange rate. According to Swedish law, it can purchase up to 10.5 million of its own shares this way. Moreover, Paradox Interactive has the flexibility to buy these securities all at once or in multiple transactions. However, considering the current stock market prices, the allocated funds won't be sufficient to buy all shares.
The company hopes that the share buyback program will help "optimize its capital structure" and increase value for investors.
At the time of writing, Paradox Interactive's shares are priced at 135.6 Swedish kronor ($14.3) each on the stock exchange. Since the beginning of the year, their value has decreased by 13.7%, and compared to the peak in October 2020, the price has dropped by 58%.