By Jesus Calero

(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 and Mattel, 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)

(Reporting by Jesus Calero in Gdansk; editing by Milla Nissi)