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DGC Gains as Swedish Gambling Operator Awards Contract

DGC One AB, a Swedish developer of communications systems, rose to a six-week high after receiving a five-year, 135 million krona ($19.9 million) order from state-owned gambling company AB Svenska Spel.

DGC advanced as much as 5.4 percent to 83.25 kronor, the highest intraday price since May 27, and was trading 4.1 percent higher at 1 p.m. in Stockholm, valuing the company at 713 million kronor. Volume was more than double the three-month average. The stock has increased 27 percent this year.

The contract includes an option for an extension of as much as three years, Stockholm-based DGC said today in a statement. Svenska Spel announced its decision for the procurement on June 25 and as the time limit to object to the gambling company’s choice of partner has now passed, the parties will sign the deal after the country’s mid-year vacation period, DGC said.

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