Sinch AB (publ)

Sinch completes a directed new share issue of 5,000,000 shares, raising approximately SEK 1,500 million

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Press Release

Stockholm 27 March 2020

Sinch completes a directed new share issue of 5,000,000 shares, raising approximately SEK 1,500 million

Stockholm, Sweden – Sinch AB (publ) – XSTO: SINCH

Sinch AB (publ) (“Sinch” or the “Company”) has in accordance with the Company’s earlier press release and based on the authorization granted by the annual general meeting on 17 May 2019, resolved on a directed new share issue of 5,000,000 shares at a subscription price of SEK 300 per share, corresponding to a discount of 2.1 percent in relation to the closing price for the Company’s share on 26 March 2020. The subscription price has been determined through an accelerated book-building process performed by Carnegie, Danske Bank and Handelsbanken Capital Markets (together, the “Joint Bookrunners”). The directed new share issue was significantly oversubscribed. A large number of Swedish and international institutional investors participated in the directed new share issue.

The directed new share issue

The board of directors of the Company has, based on the issue authorization granted by the annual general meeting on 17 May 2019, and in accordance with the Company’s press release yesterday, resolved on a directed new share issue.

The directed new share issue encompasses a total of 5,000,000 shares. The subscription price in the directed new share issue was set at 300 SEK per share, and was determined through an accelerated book building process led by the Joint Bookrunners.

The directed new share issue generated a large interest and has been carried out to selected Swedish and international institutional investors. Through the directed new share issue, the Company will raise approximately SEK 1,500 million before issue costs.

The Company intends to mainly use the proceeds to increase the Company’s financial flexibility for new acquisitions. Yesterday, the Company announced the acquisition of Wavy, a leading business messaging provider in Latin America for a total cash consideration of BRL 355 million and 1,534,582 new shares in Sinch. Moreover, Sinch is continuously evaluating potential acquisitions. The increased financial flexibility that the share issue entails strengthens the Company’s position as a relevant and competitive buyer