Incorrect reporting in Swedish daily about Telia Company’s divestment of stake in Spotify

On 4 April, 2018, a Swedish daily reported about Telia Company. With regards to the article, the company has the following comments:

On 29 March, 2018, Telia Company announced it had divested its entire holding in Spotify in several steps over some time for USD 272 million, approximately SEK 2.3 billion, to institutional investors.

The investment in Spotify has been fantastic for Telia Company, both from a direct return and a partnership perspective. Telia Company divested its stake in Spotify at an average share price of USD 132, a total of USD 272 million which is equivalent to a return on investment of approximately 2.4x.

An article in the Swedish daily Svenska Dagbladet claimed that Telia Company missed out on SEK 1 billion by not waiting to divest its stake in Spotify until after the company was listed on NYSE on 3 April, 2018. The assumption is incorrect.

Spotify closed the first day at USD 149 which is 13 percent up compared to what Telia Company sold at. If Telia Company, in theory only, would have sold at an average share price of USD 149, it would have equaled SEK 294 million more compared to the actual divestment. It is highly unclear whether a divestment of Telia Company’s entire stake in Spotify would have been possible during the first day of trading.