Consolidation faces Millicom and Tele2, says report

27 June 2017 | Alan Burkitt-Gray


Swedish-owned Tele2 and Millicom may face consolidation with other telecoms and technology businesses in the Kinnevik empire, according to a report – but may also benefit from further investment.

The Financial Times says that Kinnevik is looking at investing in further online businesses when former Telenor executive Georgi Ganev becomes CEO in January 2018.

Kinnevik is the major shareholder in both Tele2, which operates in Europe, and Millicom, which operates in Latin America and Africa under the Tigo brand. Its other interests include Scandinavian cable company ComHem and online retailer Zalando.

“I also look forward to working with the Kinnevik team and the broader network of founders, boards and management teams to continue to grow the digital investment business,” Ganev told the FT.

The paper also quotes Kinnevik’s controlling shareholder Cristina Stenbeck as telling it that the group’s main focus will be on its telecoms, media and technology (TMT) assets over the next two years. Ganev’s appointment is “a huge reaffirmation that TMT is our bloodline”, she told the paper.