Investment company Kinnevik outlined intentions to divest its holdings in telecoms group Millicom through a distribution to shareholders and a listing.
The divestment, which consists of the sale of Kinnevik’s 37.2 per cent holding, will be completed in two parts, said Millicom in a statement.
First, the operator group has made a filing with the US Securities and Exchange Commission to register the sale of 11 million shares by Kinnevik, which is its largest shareholder. In addition, underwriters have the option to purchase 1.65 milllion shares within 30 days of the offer date.
Kinnevik then intends to sell-off the rest of its stake through a distribution to shareholders in December.
As well as being the major investor in Millicom, Sweden-based Kinnevik also has holdings in operator Tele2 and cable operator Com Hem.
Kinnevik’s decision to divest its holdings follows news that Liberty Latin America entered talks with Millicom about a potential acquisition of the operator group earlier this year.
The negotiations were, however, swiftly cancelled, reportedly because Millicom’s management was reluctant to progress a deal due to Liberty Latin America’s debt levels and stock price.
Kinnevik was said to have been interested in the deal, which would have valued Millicom at almost $8 billion.Subscribe to our daily newsletter Back