Swedish conglomerate Kinnevik’s board has resolved to propose the distribution of all the company’s shares in Modern Times Group (MTG) to its shareholders, following a reclassification of Kinnevik’s MTG class A shares into MTG class B shares. The board intends to present the proposal at an EGM of shareholders during the third quarter.
The move follows the January announcement of the merger between mobile telecoms player Tele2 and cable operator Com Hem, when Kinnevik agreed to effect pro-competitive measures , if required, to complete the deal.
Kinnevik has participated in the European Commission’s merger control procedure to identify measures that would enable merger clearance. By distributing all of Kinnevik’s shares in MTG, Kinnevik said it would both ensure clearance of the merger of Tele2 and Com Hem, and deliver an extraordinary dividend to Kinnevik’s shareholders totallikng SEK4.9 billion (€483 million) based on the MTG class B share price as at June 13.
The distribution also gives Kinnevik’s shareholders the opportunity to become direct shareholders in MTG and Nordic Entertainment Group following the split of MTG into two parts that is expected to be completed during the second half of 2018.
Georgi Ganev, CEO of Kinnevik, said:”For over 30 years, MTG has shaped the future of entertainment and has successfully transformed from a traditional broadcaster into a global digital entertainer. By distributing our shares in MTG to our shareholders, we honor our commitment to support the merger of Tele2 and Com Hem while simultaneously allowing our shareholders to retain their exposure to MTG – both of which I am convinced will create long-term value for our shareholders.”