Kinnevik could be open to sell Tele2- report
Kinnevik, the Swedish investment company, could be open to selling all of its telecom company, Tele2, according to TMT Finance. This comes after recent speculation that Kinnevik could be in talks with Hong Kong-based conglomerate, Hutchison Whampoa, regarding a sale of Tele2's Swedish business. The website reported that the rumours regarding Tele2’s future have since then continued and unnamed banking sources now say that Kinnevik could be open to selling all of Tele2 instead of just the Swedish unit.
The item noted that earlier reports valued the Swedish operations at around USD 6.3bn but sources now believe that this amount may actually correspond to Tele2 as a whole. The report speculated however that this would mean a multiple of 6.5 times Tele2’s total EBITDA of USD 969m which is deemed a low premium compared to the 8 x EBITDA Kinnevik is reportedly interested in gaining.
The website’s sources made it clear that the potential sale is in its very early stages and if anything occurs it will likely be in the medium-term.
Meanwhile, the report noted that Tele2 has thus far not wished to comment on the rumours.
Source TMT Finance