Kinnevik Sells Stake in Tele2

Kinnevik, a Swedish investment company, has agreed to sell its entire 19.8% stake in Swedish telecom company Tele2 to Freya Investissement for 13 billion Swedish kronor ($1.26 billion).

Details of the Transaction

• Kinnevik will sell its 20.7 million Class A shares at SEK101 each and its 116.9 million Class B shares at SEK93 each to Freya Investissement.
• The blended purchase price of SEK94.2 per share represents a 13% premium in comparison to the closing price of the Tele2 Class B share on Friday.
• The transaction will be carried out in three steps:
  1. Freya will first acquire 31.3 million Class B shares for SEK2.9 billion.
  2. Following foreign direct investment approvals in Sweden, Latvia, and Lithuania, Freya will then acquire 14.2 million Class A shares and 85.5 million Class B shares in Tele2 for SEK9.4 billion in the second quarter of 2024.
  3. Finally, Freya will purchase Kinnevik's remaining 6.5 million Tele2 Class A shares for SEK700 million in the third quarter of 2024 after receiving necessary regulatory clearances.

Strengthening Kinnevik's Cash Position

As a result of the transaction, Kinnevik's cash position will be significantly strengthened, prompting a capital structure review by the company's board of directors.

Overall, this strategic move marks a significant development in the telecom industry and showcases the strength of Kinnevik's investment decisions.