Sweden's Kinnevik sees materially higher value in Cedar stake
09/03/2021 06:46
STOCKHOLM, March 9 (Reuters) - Investment firm Kinnevik
KINVb.ST said on Tuesday it expects a substantial increase in
the assessed fair value of its 11% stake in U.S.-based Cedar.
The Swedish company, whose stake in Cedar had been valued at
572 million crowns ($66.75 million) in its year-end release
2020, said new developments were pointing to a value uplift well
over 1.5 billion crowns, or 5.5 crowns per Kinnevik share.
"The company expects a material uplift in the assessed fair
value of its investment in Cedar following several positive
developments in the company and its market outlook,
including a recently agreed funding round," Kinnevik said in a
statement.
It said Cedar, which helps hospitals, health systems and
medical groups manage patient payments, had continued to perform
very strongly and that its market outlook had strengthened.
Kinnevik, whose shareholders include Sweden's wealthy
Stenbeck family, said the reassessed fair value of its Cedar
investment would be reported in its first-quarter report, due on
April 22.
($1 = 8.5694 Swedish crowns)
(Reporting by Helena Soderpalm; Editing by Subhranshu Sahu)
((helena.soderpalm@thomsonreuters.com; +46 8 700 10 15; Reuters
Messaging: helena.soderpalm.reuters.com@reuters.net))