STOCKHOLM (Reuters) – Investment firm Kinnevik said on Tuesday it expects a substantial increase in the assessed fair value of its 11% stake in U.S.-based Cedar.
The Swedish company, whose stake in Cedar had been valued at 572 million crowns ($66.75 million) in its year-end release 2020, said new developments were pointing to a value uplift well over 1.5 billion crowns, or 5.5 crowns per Kinnevik share.
“The company expects a material uplift in the assessed fair value of its investment in Cedar following several positive developments in the company and its market outlook,including a recently agreed funding round,” Kinnevik said in a statement.
It said Cedar, which helps hospitals, health systems and medical groups manage patient payments, had continued to perform very strongly and that its market outlook had strengthened.
Kinnevik, whose shareholders include Sweden’s wealthy Stenbeck family, said the reassessed fair value of its Cedar investment would be reported in its first-quarter report, due on April 22.
($1 = 8.5694 Swedish crowns)
(Reporting by Helena Soderpalm; Editing by Subhranshu Sahu)