STOCKHOLM, Oct 15 (Reuters) - Swedish investment company Kinnevik’s net asset value rose sharply in the third quarter as the digital businesses in its portfolio remained strong during the coronavirus pandemic.
Kinnevik is the biggest shareholder in German online fashion retailer Zalando and Swedish telecom operator Tele2 and has investments ranging from online food retailers to digital healthcare and payment services.
CEO Georgi Ganev said the company would continue to look at a number of opportunities, both within its existing companies and in new investments.
“With our strong financial position, we have full flexibility to execute on our investment strategy,” he said in the company’s third-quarter report.
Kinnevik said that Covid-19 had impacted its travel and emerging market businesses negatively, but global equity markets’ allocation of capital into tech stocks had also supported its net asset value, which rose 23% to 107.9 billion crowns ($12.2 billion) on a quarterly basis.
Kinnevik’s shares are up 61% in 2020 and have surged 166% from lows in March, with many of its holdings seeing rapid growth in the midst of the pandemic, helped by the portfolio’s focus on digital businesses.
$1 = 8.8369 Swedish crowns Reporting by Johannes Hellstrom and Helena Soderpalm; editing by John Stonestreet and Jane Merriman
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