Investment AB Kinnevik (publ) ("Kinnevik") today announced that it
has sold its investment in the pan African pay-TV operator Gateway
Broadcasting Limited ("GTV") for a total consideration of USD 23.6
million. Kinnevik's investment in GTV achieved an IRR of 40%, and in
the sale Kinnevik received 1.8 times the amount invested in May 2007.
The exit is a consequence of the sale to Vodacom of GTV's parent
company, Gateway Telecommunications SA (Pty) Ltd, which provided the
security for the equity loan in which Kinnevik was a lead investor.
Gateway offers an attractive pay-TV package and is the fastest
growing pay-TV operator in Africa. During the last year five of seven
new pay-TV subscribers have chosen GTV's services and the number of
subscribers has increased to approximately 120,000.
Kinnevik is committed to continue to invest in Africa and the GTV
investment proves the potential for value enhancing investments in
the African media and entertainment sector. Kinnevik's exposure to
Africa currently includes an investment in Bayport which is a fast
growing micro finance company operating in Zambia, Ghana, Uganda and
Tanzania, Millicom which operates seven GSM licenses in Africa with a
total of 8.6 million subscribers and Modern Times Group which
launched its first free TV channel in Ghana in December 2008."The investment in GTV illustrates the potential in investing in
Africa and the media and entertainment sector. Our network in Africa
and our knowledge about African investments puts Kinnevik in a strong
position to continue to increase our exposure to the continent," Mia
Brunell Livfors commented.
For further information, visit www.kinnevik.se or contact:
Mia Brunell Livfors, President and Chief +46 (0)8 562 000 00
Executive Officer
Torun Litzén, Director Investor Relations +46 (0)8 562 000 83
+46 (0)70 762 00 83
Investment AB Kinnevik's objective is to increase shareholder value,
primarily through net asset value growth. The Parent Company manages
a portfolio of investments focused around three comprehensive
business areas; Major Listed Holdings which includes Millicom
International Cellular, Tele2, Modern Times Group MTG, Metro
International and Transcom WorldWide, Major Unlisted Holdings which
includes the cartonboard and paper company Korsnäs, and New Ventures
which is active in finding new investments in small and mid sized
companies which has a significant growth potential. Kinnevik plays an
active role on the Boards of its holdings.
Investment AB Kinnevik's class A and class B shares are listed on the
Stockholm Stock Exchange's Nordic list for large-cap companies within
the financial and real estate sector. The ticker codes are KINV A and
KINV B.
