Sinch AB (publ)

Sinch evaluates the conditions to carry out a directed new share issue

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Press Release

Stockholm 15 June 2020

Sinch evaluates the conditions to carry out a directed new share issue

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

Sinch AB (publ) (“Sinch” or the “Company”) has mandated Carnegie, Danske Bank and Handelsbanken Capital Markets (together, the “Joint Bookrunners”) to evaluate the conditions for carrying out a directed issue of approximately SEK 700 million, through an accelerated book building process. The Company intends to mainly use the potential issue proceeds to increase the Company’s financial flexibility for new acquisitions.

The Company has engaged the Joint Bookrunners to evaluate the conditions to carry out a directed new share issue of approximately SEK 700 million, directed to Swedish and international investors of institutional character through an accelerated book building process (the “Bookbuilding”). The subscription price and the total number of new shares in the new share issue will be determined through the Bookbuilding. The Bookbuilding will commence immediately after the announcement of this press release. The directed new share issue is contingent on a resolution, based on the authorization given by the annual general meeting on 15 May 2020, by the board of directors, which, alongside pricing and allocation is expected to occur prior to the beginning of trading on Nasdaq Stockholm at 09.00 CET on 16 June 2020. The board of directors may decide to extend or shorten the application period and can at any moment decide to terminate the Bookbuilding and thus refrain from carrying out the directed new share issue. The Company will announce the outcome of the new share issue in a subsequent press release after completion of the Bookbuilding.

The Company intends to mainly use the proceeds to increase the Company’s financial flexibility for new acquisitions. Today, the Company announced the acquisition of ACL Mobile Limited, a leading provider of cloud communications services in India and Southeast Asia for a total cash consideration of SEK 655 million. Moreover, Sinch is continuously evaluating potential acquisitions. The increased financial flexibility that a potential share issue would entail would strengthen the Company’s position as a relevant and competitive buyer.