Kinnevik's Q2 NAV improves 38 percent, proposes special dividend

For the second quarter, Kinnevik reported NAV of 89.6 billion Swedish krona or 323 Swedish krona per share, up 24.7 billion Swedish krona or 38 percent in the quarter. The company’s net cash position was 5.5 billion Swedish krona, corresponding to 6.6 percent of portfolio value by quarter-end, and amounting to 3.6 billion Swedish krona adjusted for its upcoming 1.9 billion Swedish krona extraordinary cash distribution to shareholders.

“With a large part of the world in lockdown, the shift to digital has taken a giant leap forward. I am proud to note that, in the midst of the uncertainty and suffering created by the Covid-19 pandemic, our digitally-enabled companies are responding to the challenge and providing vital services to consumers, validating our strategy,” said Georgi Ganev, CEO of Kinnevik in a statement.

Kinnevik completes 4.4 percent stake sale in Zalando

During the quarter under review, Kinnevik completed a sell-down of a 4.4 percent stake in Zalando, generating net proceeds of 6.7billion Swedish krona. The company’s board of directors has proposed an extraordinary cash distribution of 7 Swedish krona per share or 1.9 billion Swedish krona in total. The company further said that distribution follows the sell-down in Zalando and is subject to approval by an EGM to be held on August 19, 2020.

Kinnevik continued to build the healthcare portfolio with a new investment into Cityblock, and follow-on investments in Cedar and VillageMD, which together with material value uplifts have brought the healthcare businesses’ share of the company’s portfolio value to 17 percent, compared to 3 percent a year ago.

In the quarter, Kinnevik invested 400 million Swedish krona in total, including 235 million Swedish krona in Cityblock, 74 million Swedish krona in Cedar’s funding round, 28 million Swedish krona in secondary shares in VillageMD. The company carried out total divestments of 6.9 billion Swedish krona in the quarter, of which 6.7 billion Swedish krona from the Zalando sell-down, and 198 million Swdish krona from the sale of a 23 percent stake in Qliro Group.

On July 8, 2020, Kinnevik invested 25 million dollars in VillageMD’s funding round led by Walgreens Boots Alliance and during early July, the company fully exited its 12 percent shareholding in Home24, generating net proceeds of 21 million euros.