ZAL Zalando SE

   By Mauro Orru 
 

Shares in Zalando SE fell Wednesday after Swedish investment firm Kinnevik AB confirmed plans to distribute its entire 21% stake in the Berlin-based online retailer to its shareholders for about 55.1 billion Swedish kronor ($6.64 billion).

At 0850 GMT, Zalando was trading 5.2% lower at EUR97.02.

Zalando said it backs Kinnevik's decision, which comes more than 10 years after the Swedish company's first investment in the firm.

"After such a successful partnership, granting Kinnevik shareholders direct exposure to Zalando is a logical next step and we are looking forward to welcoming them as direct shareholders in Zalando. We view this as an opportunity to gain renewed support for our vision and strategy going forward," Zalando Co-Chief Executive Rubin Ritter said.

Kinnevik said it would propose the distribution at its annual general meeting on April 29 in a bid to complete the distribution in the second quarter.

The company has already secured preliminary approval from shareholders representing 30% of shares and 50% of votes, Kinnevik said.

"By distributing Zalando to our shareholders, the portfolio distribution becomes more balanced and unique, and we will have more than two-thirds of our capital invested in a diverse set of younger, high growth, increasingly private digital companies, making consumers' lives better in the digital age," Kinnevik Chief Executive Georgi Ganev said.

-- Dominic Chopping contributed to this article

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

(END) Dow Jones Newswires

February 17, 2021 04:13 ET (09:13 GMT)

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