Zalando’s investor Kinnevik launches buyback programme

Investment firm Kinnevik is seeking to capitalise on a global downturn in stock prices with a share buyback programme and investment opportunities in financial services, health care and education.

As the company’s CEO Lorenzo Grabau said, he had seen a clear reversal of attitudes in global technology sentiment, with shares taking a beating in recent weeks.

That has created investment opportunities for the Swedish investor, which has major stakes in online fashion retailer Zalando and Rocket Internet, he said, as reported by Reuters.

"We are well capitalised and ready to invest again," he told Reuters. "We see very attractive investment opportunities, both in our existing companies where some of the early investors might not want to stay around for the next 3-5 years and in new investments in areas such as financial services, health care or education."

Kinnevik issued its quarterly earnings on Wednesday, advancing its 2 billion-3 billion Swedish crowns of net investments for this year after spending 430 million crowns last year, excluding the sale of its stake in online classifieds website Avito.

Following last year's 846 million dollars sale of Avito, the cash-rich investor announced a 500 million crown share buyback programme and set its dividend at 7.75 crowns per share for 2015, up 7 percent on the year.

In the same vein, Grabau said two or three of the investment firm's top six targets are in financial technology and insurance.

Kinnevik will also keep hunting for exit opportunities, although current global sentiment made it more difficult, he said. "We will try but I suspect our divestiture plans and proceeds will be lower," he said.