Sinch AB (publ)

Sinch announces the completion of a directed new share issue of 3,187,736 shares, raising approx. SEK 3.3 billion, and larger shareholders’ sale of existing shares to a fund managed by SB Management - Seite 2

Share Issue

The board of directors of the Company has, based on the authorization granted by the annual general meeting on 15 May 2020, and in accordance with the Company’s press release earlier today on 30 November 2020, resolved on the Share Issue.

The Share Issue comprises a total of 3,187,736 new shares. The subscription price in the Share Issue was set at SEK 1,050 per share, corresponding to (i) a discount of approximately 5 percent in relation to the volume weighted average share price for the Company’s share on Nasdaq Stockholm on 30 November 2020, and (ii) a premium of approximately 1 percent in relation to the closing price for the Company’s share on Nasdaq Stockholm on 27 November 2020, and was determined on the basis of an accelerated book building process led by the Joint Bookrunners.

SB Management has, in accordance with its previous commitment, subscribed for 1,200,000 shares in the Share Issue. The Share Issue generated a large interest and has been subscribed for by selected Swedish and international institutional investors.

Through the Share Issue, the Company will raise approximately SEK 3.3 billion before issue costs. The Company intends to mainly use the proceeds from the Share Issue to increase the Company’s financial flexibility for new acquisitions. Sinch is continuously evaluating potential acquisitions. The increased financial flexibility that the Share Issue entails further strengthens the Company’s position as a relevant and competitive buyer. The Company will not receive any proceeds from the Sell-down.

The Company’s board of directors’ assessment, based on the accelerated book building process executed by the Joint Bookrunners, is that the Share Issue was carried out on market terms. The reason for deviating from the shareholders’ preferential rights in the Share Issue is to, in a timely and cost efficient manner, enable the raising of capital to finance further value creating acquisitions and to broaden the Company’s shareholder base.

Through the Share Issue, the number of shares and votes in the Company will increase by 3,187,736, from 59,985,934 to 63,173,670 shares and votes. The share capital will increase with SEK 318,773.60 from SEK 5,998,593.40 to SEK 6,317,367.00. The Share Issue entails a dilutive effect for existing shareholders of approximately 5 percent based on the total number of shares in the Company after the Share Issue.