Swedish investment company Kinnevik has proposed to distribute its entire shareholding in Millicom International Cellular (MIC) to its shareholders. Kinnevik currently owns 37.835 million Millicom shares – equivalent to 37.2% of Millicom’s total shares outstanding. Kinnevik’s Board of Directors intends to propose the distribution to an Extraordinary General Meeting of shareholders with a view to carrying out the distribution before the end of 2019.
By distributing its entire Millicom shareholding – in the form of Swedish depository receipts (SDRs) listed on Nasdaq Stockholm – Kinnevik will deliver an extraordinary distribution of value to Kinnevik’s shareholders worth approximately SEK19.0 billion (USD2.0 billion), corresponding to SEK69 per Kinnevik share (based on the closing price of Millicom’s SDRs as at 16 September 2019). Kinnevik has further resolved to amend its shareholder remuneration policy and cease to pay ordinary cash dividends in favour of paying out excess capital generated by its investment activities in the form of extraordinary dividends.
Millicom was founded by Kinnevik almost 30 years ago. Since Millicom’s listing on Nasdaq Stockholm in 2004, Kinnevik’s Millicom investment has yielded significant dividends and returns to Kinnevik and its shareholders. In recent years, Kinnevik has actively supported Millicom’s strategy to focus on Latin America, creating a consolidated fixed-mobile convergence (FMC) player. Kinnevik also owns notable stakes in Nordic telco group Tele2 and European e-commerce player Zalando.