Kinnevik shares slump after Q3 report, investment in H2 Green Steel
19/10/2022 10:41
** Shares of Kinnevik KINVb.ST slide 7% after the Swedish
investor announced its Q3 figures and took part in H2 Green
Steel equity funding
** H2 said on Wednesday it completed a EUR 260 million
financing to build world's first large scale green steel plant,
adding Kinnevik as a new shareholder
** "Investors are unhappy about Kinnevik going outside of
their traditional area of investments, which for them is tech of
various sorts, new medical value-based care, software
platforms," says Oskar Lindstrom from Danske Bank
** Also on Wednesday Kinnevik reported its quarterly numbers
with net asset value falling to SEK 58.0 bln from SEK 75.8 bln
reported year ago
** Lindstrom adds investors are also concerned about large
write downs 50-75% in two of its unlisted online grocery
companies being indicative of larger uncertainty about values of
the unlisted asset portfolio of Kinnevik
** The analyst points out that third reason for concern is
likely that Kinnevik will take 3 times their pro rata share in
the private placement of listed subsidiary Babylon which
investors may feel is indicative of more problems ahead
** Today's losses wiped off 2.9 billion Swedish crowns from
company's market cap
** Shares are on track for their worst day in four months
ago when it closed 7.7 % lower
(Reporting by Agnieszka Gosciak-Rabalska)
((agnieszka.gosciak@thomsonreuters.com))