Zalando: shares drop after Kinnevik distributes stake
(CercleFinance.com) - Zalando shares dropped sharply on Wednesday after the Swedish investment company Kinnevik, a long-term shareholder of the German online fashion platform, said that it plans to distribute all of its shares to investors.
Kinnevik said it plans to propose distributing its stake in the Berlin-based retailer to its shareholders in a deal worth some 55 billion Swedish kronor (about 5.5 billion euros).
The Swedish firm said the move is part of a strategic plan to transform its portfolio into a "more balanced, "focused", "younger", and "high-growth" profile focused on unlisted companies.
Kinnevik has been a pivotal investor in Zalando since 2010, notably supporting the company during its IPO in 2014. Note that Zalando has quadrupled its business since its public market debut.
Kinnevik said it owns 54 million Zalando shares, equivalent to 21% the company's share capital.
The Zalando shares dropped over 5% after the announcement.
Copyright (c) 2021 CercleFinance.com. All rights reserved.
Kinnevik said it plans to propose distributing its stake in the Berlin-based retailer to its shareholders in a deal worth some 55 billion Swedish kronor (about 5.5 billion euros).
The Swedish firm said the move is part of a strategic plan to transform its portfolio into a "more balanced, "focused", "younger", and "high-growth" profile focused on unlisted companies.
Kinnevik has been a pivotal investor in Zalando since 2010, notably supporting the company during its IPO in 2014. Note that Zalando has quadrupled its business since its public market debut.
Kinnevik said it owns 54 million Zalando shares, equivalent to 21% the company's share capital.
The Zalando shares dropped over 5% after the announcement.
Copyright (c) 2021 CercleFinance.com. All rights reserved.