Sweden's Kinnevik to exit investment in Millicom (updated)
04/06/2019 08:35
(Adds detail, changes dateline)
STOCKHOLM, June 4 (Reuters) - Investment company Kinnevik AB
KINVb.ST plans to divest its shareholding in
telecommunications and media company Millicom International
Cellular SA TIGOsdb.ST through a public offering and a
distribution to Kinnevik's shareholders.
Sweden's Kinnevik will offer to divest 29% or about 11
million shares of the total 37.2% of Millicom shares it owns,
and distribute the remainder of its holding to shareholders, the
company said in a statement. urn:newsml:reuters.com:*:nGNX65zq8Q
Kinnevik, founded by three wealthy families in 1936, is
focused on digital businesses such as Swedish telecoms company
Tele2 TEL2b.ST and online retailer Zalando ZALG.DE .
Shares in Millicom, a cable and mobile operator in Latin
America and Africa, traded 6.8 percent lower at 501 crowns at
0720 GMT.
The Kinnevik move comes after Millicom said in January talks
about a possible offer for all shares of the company have been
terminated by Liberty Latin America LILA.O without an offer.
urn:newsml:reuters.com:*:nASP0004O4
Sources said then that the talks broke up over Kinnevik's
demand for a complete deal, rather than the cash and share offer
made by Liberty.
Kinnevik also said on Monday that it would revise its
shareholder payout policy from next year. It will pay an annual
dividend equivalent to ordinary dividends received from its
portfolio companies while returning excess capital generated by
investments to investors.
Its prior policy was to pay an annual dividend growing in
line with dividends received from its companies, and the cash
flow generated from investments.
Under Chief Executive Georgi Ganev, the firm has been
pursuing a strategy of increasing its exposure to private Nordic
companies as it battles for assets with larger hedge funds and
private equity firms muscling in on its territory.
(Reporting by Helena Soderpalm in Stockholm, additional
reporting by Sabahatjahan Contractor in Bengaluru
Editing by Keith Weir)
((Sabahatjahan.Contractor@thomsonreuters.com; within U.S. +1
646 223 8780))