Watch an information movie about the Zalando distribution
Kinnevik first invested in Zalando in 2010. As the company’s largest shareholder for 10 years, Kinnevik has consistently supported Zalando’s strategy as it evolved from an online fashion catalogue retailer to an online platform connecting all the major players in the fashion industry – from end-customers, through retailers, brands, stylists and factories, to advertisers. Zalando’s strong execution has created significant value for Kinnevik’s shareholders – from a total investment of SEK 7.9bn, Kinnevik’s stake is today worth SEK 55.1bn and is now intended to be distributed to shareholders. In addition, Kinnevik has already released a total of SEK 12.7bn in capital previously invested in Zalando to strengthen its financial position, invest in the younger, high-growth portfolio of businesses such as VillageMD, Kolonial and Budbee, and to pay shareholders an extra cash distribution of SEK 1.9bn in 2020.
The distribution pushes Kinnevik’s strategic transformation forward by balancing a larger share of its portfolio towards its younger, disruptive and technology-enabled growth and venture capital businesses. Through the distribution of the Zalando shareholding to Kinnevik’s shareholders, the relative contribution of these businesses to Kinnevik’s portfolio increases materially while Kinnevik’s shareholders are provided the option to directly participate in Zalando’s future shareholder value creation, or divest to receive a cash consideration that may be reinvested in Kinnevik as it continues to execute on its growth-focused investment strategy.