(Rewrites to show sale is completed, adds selling price)
STOCKHOLM, March 7 Swedish mutual insurance
company Folksam has sold 25.6 million shares in Swedbank
, or 2.3 percent of the total Swedbank share capital,
for about $622 million, it said late on Monday.
Folksam, one of Sweden's largest investment managers and
Swedbank's second-largest owner, cut its holding in the bank to
7 percent but said it was not looking to reduce its stake
"Our ownership in Swedbank remains long-term both in
financial and strategic aspects, even though this was the right
time to decrease the Swedbank concentration in our asset
portfolios," Folksam Chief Executive Jens Henriksson said in a
The stake was sold at 219 crowns per share in a bookbuilding
process to institutional investors, a 2.6 percent discount
compared to Swedbank's closing price on Monday.
Swedbank was hardest hit 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
Folksam said the return on the Swedbank investment amounted
to about 22 billion Swedish crowns ($2.44 billion) since 2008.
J.P. Morgan acted as bookrunner in connection with the
($1 = 9.0107 Swedish crowns)
(Reporting by Johan Sennero and Johannes Hellstrom; Editing by