Kinnevik distributes shares in Millicom to shareholders

kinnevik

Swedish tech investor, Kinnevik AB said that it has resolved to propose the distribution of its entire shareholding in Millicom International Cellular S.A. to its shareholders.

Kinnevik said it further resolved to amend its shareholder remuneration policy and cease to pay ordinary cash dividends in favor of paying out excess capital generated by its investment activities in the form of extraordinary dividends.

Kinnevik currently owns 37,835,438 Millicom shares, equivalent to 37.2 percent of Millicom’s total shares outstanding. Kinnevik’s Board of Directors intends to propose the distribution to an Extraordinary General Meeting of shareholders in time for the distribution to be carried out before the end of 2019. By distributing its entire shareholding in Millicom.

Georgi Ganev, CEO of Kinnevik, said: “Kinnevik’s ambition is to be the go-to public company for investors seeking exposure to the best entrepreneurs building leading digital businesses in Europe, the Nordics and the U.S. After the distribution of our shareholding in Millicom, I believe our shareholders will benefit from Kinnevik having a higher share of its capital invested in unlisted, leading consumer businesses of tomorrow.

“As part of our ambitions, we are today announcing an amended shareholder remuneration policy. Under this policy, we will cease to pay ordinary dividends in favor of re-investing the dividends we currently receive from Tele2 into our portfolio’s proven and high-performing companies on our shareholders’ behalf. We have a continued ambition to distribute meaningful cash returns, but going forward it will be in a more ad hoc manner as and when we release excess capital from our investments,” he said.