Sweden's Tele2 shares fall as Kinnevik sells 7.2% stake
Reuters
Published May 24, 2022 07:10
Updated May 24, 2022 08:47
STOCKHOLM (Reuters) -Tele2 shares dropped 7% on Tuesday after Kinnevik said it would sell roughly a quarter of its holding in the telecoms operator for 6.1 billion Swedish crowns ($619.6 million).
The deal was priced at 121.76 crowns per share, which represents a 6.2% discount to Monday's close.
The Swedish investment company said it had completed a placement of 50 million class B shares, which constitute 7.2% of the share capital and 26.7% of the investment company's holding in Tele2, to institutional investors.
"The transaction provides Kinnevik with additional financial strength at a time of market uncertainty, ensuring net cash runway through 2024 at our current pace of investment of around SEK 5bn per year," Kinnevik said in a statement late on Monday.
Tele2 shares were down 7.4% while Kinnevik shares fell 2.7% by 0717 GMT.
Kinnevik's investments range from Tele2 to delivery startup Budbee, but it has sharpened its focus on the healthcare industry. It added that it will hold 19.8% of Tele2's issued share capital and 36.1% of the votes after the transaction.
($1 = 9.8451 Swedish crowns)
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Written By: Reuters
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