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June 13 (Reuters) - Swedish investment company Kinnevik on Thursday scrapped plans to exit its holding in telecommunications firm Millicom through a public offering and distribution to Kinnevik shareholders, citing unfavorable market conditions.
Millicom shares fell 9 percent as Kinnevik announced its initial plan earlier this month and said it would revise its shareholder payout policy from next year.
“It has become clear that unfavorable market conditions mean that the envisioned two-step divestment cannot be concluded in its current form and on terms which Kinnevik finds sufficiently attractive for its shareholders,” Kinnevik said in a statement.
The company added that its previous amendment of its shareholder payout policy was revoked.
“Kinnevik remains firmly committed to continuing to strengthen its financial position and evolve its portfolio towards a higher proportion of growth companies, including through maximizing returns from a successful and long-standing investment such as Millicom,” Kinnevik said.
Kinnevik is Millicom’s largest owner with a 37% stake. (Reporting by Rama Venkat in Bengaluru and Johannes Hellstrom in Stockholm; Editing by Sandra Maler and Niklas Pollard)