Sweden's Tele2 shares fall as Kinnevik sells 7.2% stake (updated)
24/05/2022 08:42
(Adds detail, shares)
STOCKHOLM, May 24 (Reuters) - Tele2 TEL2b.ST shares
dropped 7% on Tuesday after Kinnevik KINVb.ST 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)
(Reporting by Helena Soderpalm; Editing by Simon Johnson and
Emelia Sithole-Matarise)
((helena.soderpalm@thomsonreuters.com; +46 8 700 10 15; Reuters
Messaging: helena.soderpalm.reuters.com@reuters.net))