Deal to divest Kinnevik stake in Tele2 sends both stocks shining

Tele2 AB

26/02/2024 08:49

** Shares in Sweden's Kinnevik  KINVb.ST  and Tele2
 TEL2b.ST  shine with around 9% gains after the investment
company, Kinnevik, agreed to sell its entire stake in the
telecoms group
    ** French telecoms company Iliad has agreed to buy a 19.8%
stake in the Swedish telecoms operator Tele2 for SEK 13 billion,
through Freya Investissement, in a transaction split into three
tranches
    ** J.P. Morgan says the sale has an implied share price of
SEK 94.2, which indicates a 13% premium to the current price
    ** "This stake sale is not a surprise to us and it removes
an overhang on the Tele2 shares," says JPM in an analyst note,
as it points out Kinnevik has been trying to move more into
growth investments 
    ** The Tele2 holding was the only major non-growth
investment in the portfolio, says JPM
    ** There is a potential for an extra ordinary dividend from
Kinnevik in the range of SEK 6-7 billion, or SEK 20-25 per
share, says Pareto Securities analyst Stefan Wård
    ** Kinnevik is on track for its best day since Feb. 2, 2023,
while Tele2 tracks its best day in nearly four years, since
March 17, 2020, and both are among the top rises on the
pan-European Stoxx 600 index  .STOXX 


 (Reporting by Agata Rybska)
 ((gdansk.newsroom@thomsonreuters.com;))