March 6 (Reuters) - Swedish mutual insurance company Folksam will sell 25.6 million shares in Swedbank, or 2.3 percent of the total Swedbank share capital, it said on Monday.
Folksam, one of Sweden’s largest investment managers with a total of around 280 billion Swedish crowns ($31 billion) in assets, will reduce its ownership to 7 percent in a bookbuilding process but said it was not looking to reduce its stake further.
“Our ownership in Swedbank remains long-term from both a financial and strategic perspective...(but) now is the right time to reduce the Swedbank concentration in our asset portfolio,” Folksam Group Chief Executive Jens Henriksson said.
Swedbank was hit hardest of the Swedish banks during the financial crisis and Folksam became a major shareholder in 2008 when the bank was forced to raise capital in a share rights issue.
Folksam said the return on the Swedbank investment amounted to about 22 billion Swedish crowns since 2008.
J.P. Morgan is bookrunner and the offer is aimed at institutional investors. The price and result will be disclosed before the Stockholm stock exchange opens at 0700 GMT on Tuesday. ($1 = 9.0210 Swedish crowns) (Reporting by Johan Sennero; editing by Susan Thomas)