Kinnevik drops planned Millicom sale, cites market conditions (updated)
13/06/2019 07:31
(Adds background, detail)
June 13 (Reuters) - Swedish investment company Kinnevik
KINVb.ST on Thursday scrapped plans to exit its holding in
telecommunications firm Millicom through a public offering and
distribution to Kinnevik shareholders, citing unfavorable market
conditions.
Millicom shares fell 9 percent as Kinnevik announced its
initial plan earlier this month and said it would revise its
shareholder payout policy from next year. urn:newsml:reuters.com:*:nL8N23B0WZ
"It has become clear that unfavorable market conditions
mean that the envisioned two-step divestment cannot be concluded
in its current form and on terms which Kinnevik finds
sufficiently attractive for its shareholders," Kinnevik said in
a statement. urn:newsml:reuters.com:*:nGNERw2fk
The company added that its previous amendment of its
shareholder payout policy was revoked.
"Kinnevik remains firmly committed to continuing to
strengthen its financial position and evolve its portfolio
towards a higher proportion of growth companies, including
through maximizing returns from a successful and long-standing
investment such as Millicom," Kinnevik said.
Kinnevik is Millicom's largest owner with a 37% stake.
(Reporting by Rama Venkat in Bengaluru and Johannes Hellstrom
in Stockholm;
Editing by Sandra Maler and Niklas Pollard)
((ramavenkat.raman@thomsonreuters.com; within U.S. +1 646 223
8780, outside U.S. +91 80 6749 7151; Reuters Messaging:
ramavenkat.raman.thomsonreuters.com@reuters.net))