June 14, 2018 / 6:53 AM / 2 months ago

Kinnevik to distribute MTG shares to push ahead Tele2 and Com Hem merger

STOCKHOLM, June 14 (Reuters) - Investment firm Kinnevik said on Thursday it aimed to distribute its shares in MTG to its shareholders in an effort to speed up the completion of the proposed merger of Tele2 and Com Hem.

Mobile operator Tele2, in which Kinnevik owns 30 percent of shares, agreed in January a $3.2 billion takeover of cable TV company Com Hem, in which the investment firm owns 19 percent.

Kinnevik announced its support of the proposed deal, and said it would take pro-competitive measures to complete the merger, if needed.

The investment firm said on Thursday it had participated in the European Commission’s vetting procedure to identify measures that would enable clearance of the merger in the first phase of the regulatory review.

“By distributing all of Kinnevik’s shares in MTG, Kinnevik both expedites clearance of the merger of Tele2 and Com Hem, and delivers an extraordinary dividend to Kinnevik’s shareholders of in total SEK 4.9 billion,” Kinnevik said in a statement.

Kinnevik, which owns 20 percent of the shares in MTG, added it would propose the distribution of shares at an extraordinary general meeting in the third quarter of 2018.

It said the shares would be distributed after a reclassification of all Kinnevik’s MTG class A shares into class B shares during the first half of August. (Reporting by Helena Soderpalm; editing by Niklas Pollard)

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