Sweden's Tele2 shares fall as Kinnevik sells 7.2% stake

STOCKHOLM (Reuters) -Tele2 shares dropped 7% on Tuesday after Kinnevik said it would sell roughly a quarter of its holding in the telecoms operator for 6.1 billion Swedish crowns ($619.6 million).

The deal was priced at 121.76 crowns per share, which represents a 6.2% discount to Monday's close.

The Swedish investment company said it had completed a placement of 50 million class B shares, which constitute 7.2% of the share capital and 26.7% of the investment company's holding in Tele2, to institutional investors.

"The transaction provides Kinnevik with additional financial strength at a time of market uncertainty, ensuring net cash runway through 2024 at our current pace of investment of around SEK 5bn per year," Kinnevik said in a statement late on Monday.

Tele2 shares were down 7.4% while Kinnevik shares fell 2.7% by 0717 GMT.

Kinnevik's investments range from Tele2 to delivery startup Budbee, but it has sharpened its focus on the healthcare industry. It added that it will hold 19.8% of Tele2's issued share capital and 36.1% of the votes after the transaction.

($1 = 9.8451 Swedish crowns)

(Reporting by Helena Soderpalm; Editing by Simon Johnson and Emelia Sithole-Matarise)