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Asmodee to reduce debt by 1.5 bln euros

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Spin-off from Embracer to be completed by end-March 2025

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Sees mid-single-digit pct organic growth in medium term

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Sees mid-term EBITDA margin of above 18%

(Recasts, adds CEO comments in paragraphs 6 and 11, details and

context from paragraph 7)

By Jesus Calero

Nov 19 (Reuters) - Tabletop game publisher Asmodee said

on Tuesday it would reduce its debt by 1.5 billion euros ($1.6

billion) as it gears up for its planned spin off from gaming

group Embracer.

The embattled owner of the Tomb Raider franchise said in

April it planned to split into three listed companies as part of

its debt restructuring.

The $3 billion Embracer paid for Asmodee in 2022 now matches

the entire group's market capitalization, reflecting the

challenges it has faced since COVID-related lockdowns ended.

Asmodee will refinance 900 million euros in debt via capital

markets ahead of its Stockholm listing, and receive a 400

million euro equity injection from Embracer following its

divestment of Easybrain.

That will reduce Asmodee's pro forma net debt to 493 million

euros and its leverage ratio to 2.2 times adjusted core profit

(EBITDA), it said.

Asmodee CEO Thomas Koegler told Reuters the company was

confident in its debt levels, and said the lower leverage would

be a "game changer" for a stronger acquisition strategy.

Asmodee's spin-off will be completed in March 2025 at the

latest, with the equity injection expected in January, Koegler

added.

The publisher of hit games like Catan, Ticket to Ride and

Pandemic also said it planned to distribute excess liquidity

through dividends once it achieves a sustainable leverage ratio.

It forecast mid-single-digit organic sales growth and an

adjusted EBITDA margin exceeding 18% in the medium term.

Like global toy and game manufacturers Hasbro ( HAS ) and

Mattel ( MAT ), Asmodee's business could be hit by potential

U.S. tariffs on Chinese imports under the Trump administration.

"While we do have partnerships in China, we also work with

manufacturers in Western countries, which gives us the

flexibility to adapt quickly to tariffs," Koegler said.

Asmodee's flagship Catan is manufactured domestically in the

U.S.

($1 = 0.9461 euros)