Why is This Groupon Investor DUMPING Its Stake?
Swedish investment group Kinnevik sold its remaining stake in Groupon (NASDAQ:GRPN) for $81.5 million, a significant return on its $2.9 million investment in German company MyCityDeal, which it made two years ago, shortly before MyCityDeal was purchased by Groupon.
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Though getting back its investment 28-fold, Kinnevik’s returns could have been a lot higher had the Stockholm-based company cashed out around the time of Groupon’s IPO last November. The company’s shares have been on an almost constant slide since then, down 57.3 percent as of close Monday.
When Kinnevik sold its 8.3 million shares, they were no longer worth $26.11 apiece, but just $9.74. Groupon shares climbed 10.3 percent on Monday to close at $11.15 following news of Kinnevik’s divestment.