TeliaSonera AB, Sweden’s largest telephone operator, fell the most in seven months in Stockholm trading after the Finnish state sold shares in the company as well as bonds exchangeable for TeliaSonera stock.
TeliaSonera dropped as much as 4.3 percent to 45.45 kronor, the biggest intraday drop since Aug. 18. The stock traded 3.5 percent down at 45.79 kronor as of 10:13 a.m.
Solidium, a company wholly-owned by the Finnish state, today sold 89 million TeliaSonera shares in a bookbuilding process at 45.20 kronor a share, it said in a statement. Solidium will receive 451 million euros ($600 million) from the sale. The stake represents about 2.1 percent of the shares of Stockholm-based TeliaSonera, which was created when the former state-owned phone companies Telia AB and Sonera Oyj were merged.
Solidium also placed 600 million euros of bonds that can be exchanged for TeliaSonera shares at an initial exchange price of
57.63 kronor. If all bonds are exchanged, Solidium’s stake in TeliaSonera would decrease to 9.5 percent. Before the sales, it was about 13.7 percent, Solidium said.
“I am very satisfied with the successful execution of this important transaction, which is a step in diversifying Solidium’s portfolio,” said Solidium Managing Director Kari Jarvinen. “Demand for Solidium’s high-quality credit in combination with a liquid underlying stock allowed us to price the exchangeable bond at very attractive terms.”