CDON Group announces conversion price for previously issued convertible bond


CDON Group announces conversion price for previously issued convertible
bond

CDON Group AB (publ.) (‘CDON Group' or ‘the Group') today announced that
the conversion price for its SEK 250.0 million five year convertible
bond has been set at SEK 38.00. CDON Group's former parent company
Modern Times Group MTG subscribed to 100% of the convertible bond on 2
December 2010. MTG may therefore convert the bond into a maximum of
6,578,947 CDON Group shares between 15 June 2012 and the end of 1
December 2015. The bond matures on 2 December 2015.

The conversion rate corresponds to 125 per cent of the volume-weighted
trading price of the CDON Group share between 15 December 2010 and 14
January 2011 (the first 20 days of trading in the Group's shares).  The
full conversion of the bond would result in an increase in the number of
outstanding shares from 66,342,124 at 31 December 2010 to 72,921,071,
and a 9.0% dilution effect.

The convertible bond is unsubordinated and bears a cash interest rate of
2.85 per cent per annum. The interest costs to be reported in the
Group's income statement are higher because the convertible bond is a
compounded financial instrument, which, in accordance with IFRS, is
reported partly as a liability and partly as equity in the Group's
balance sheet. The equity part is the value of the option to convert the
bond into shares, which decreases over the period to maturity. This
change in value between quarterly balance sheet dates is reported as a
non-cash net financial item in the Group's income statements.

***

For further information, please visit www.cdongroup.com, or contact:

Mikael Olander, President & Chief Executive Officer
Martin Edblad, Chief Financial Officer
Phone:                 +46 (0) 10 703 20 00

Investor and analysts enquires:
Andreas Ericson, Head of Investor Relations
Phone:                 +46 (0) 10 703 21 68
E-mail:                 
ir@cdongroup.com                                                        

Media enquires:
Fredrik Bengtsson, Head of Communications    
Phone:                 +46 (0) 10 703 20 04
E-mail:                  fredrik.bengtsson@cdongroup.com  

Attachments

01192002.pdf