Kinnevik writes down its investment in Iroko to USD1.9 million

Kinnevik writes down its investment in Iroko to USD1.9 million

Kinnevik, the Swedish tech investor has disclosed that its investment in Iroko Partners has depreciated in fair value by profit and loss to USD1.9 million as at December, 2016.

The write down is a slight improvement from USD1.6 million disclosed in the previous year.

However, due to the fact that Kinnevik base its market valuation on ‘Revenue multiple’ method, the Swedish tech investor with 34% stake in Konga, said Iroko is worth USD68 million.

The disclosure was stated in the company’s 2016 annual report to its shareholders.

The actual value based on its assumption was SEK611 million (Swedish Krona). This is approximately NGN21.7 billion using real time and official Central Bank Forex rate.

This assumption for the valuation is based on the company’s fair value and value from latest transaction as at 31 December, 2016.

The Swedish investor has so far invested USD12 million in the company (approximately NGN38 billion using the real time official Forex rate).

Iroko Partners which started as a video streaming website has now divested into TV broadcast for payTV companies in Nigeria.