Kinnevik proposes cash distribution of 6.4 billion Swedish krona

During the first quarter, Kinnevik announced the divestment of its full shareholding in Tele2 to Iliad/NJJ for a total consideration of 13 billion Swedish krona. Following this transaction, the company’s board intends to propose an extraordinary cash distribution of 23 Swedish krona per share or 6.4 billion Swedish krona in total.

“With Kinnevik’s divestment of its entire stake in Tele2 to Iliad/NJJ announced in the first quarter, we are completing our strategic transformation to a growth-focused investment firm that we commenced some six years ago. Our board of directors has decided to recommend a 6.4 billion Swedish krona extraordinary cash distribution, providing shareholders a significant yield while ensuring that Kinnevik has the financial strength and flexibility to capture the many opportunities that will arise over the coming years,” said Georgi Ganev, CEO of Kinnevik.

Kinnevik’s NAV of 47.9 billion Swedish krona or 170 Swedish krona per share, declined 0.2 billion Swedish krona or 0.5 percent in the quarter, and dropped 7.5 billion Swedish krona or 14 percent compared to the first quarter of 2023.

“Against a stabilising market backdrop, our core growth companies continued to grow and improve profitability. However, WBA’s impairment charge related to VillageMD goodwill impacted NAV negatively in a meaningful way in the quarter,” added Ganev.

The company also led a 110 million dollars funding round in Mews, the vertical software and payment solution for hotels and announced participation in a 58 million dollars funding round in Pelago, the substance use management platform, with a 8 million dollars investment paid in the fourth quarter of 2023. The round was led by Atomico Growth with participation from all other existing investors.

The value of Kinnevik’s unlisted portfolio was down 5 percent in the quarter, driven primarily by a significant write-down of VillageMD, reflecting a goodwill impairment by controlling shareholder WBA. Without the VillageMD write-down, the unlisted portfolio was up 3 percent.