0911 GMT - Modern Times Group's proposed acquisition of Plarium is nothing short of transformative, roughly doubling the size of the business in revenue and adjusted Ebitda terms, Citi analysts write. Given the nature of its funding via cash and debt, the deal will also likely be over 80% accretive to consensus earnings, the bank says. "We see the transaction bringing potential benefits in terms of further diversification and scale in marketing and live operations but also a degree of risk given the transaction takes away the security of the hitherto very strong balance sheet." Citi rates Modern Times Group at buy with a 155 Swedish kronor target price. Shares closed 9.3% higher after the deal was announced Tuesday and trade 3.8% higher at 87.10 kronor Wednesday.(dominic.chopping@wsj.com)
(END) Dow Jones Newswires
November 13, 2024 04:11 ET (09:11 GMT)
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