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April 27 (Reuters) - Swedish investment firm Kinnevik on Thursday said it had bought an 18.5 percent stake in Swedish cable-tv firm Com Hem as it presented its first-quarter report.
* "As a big investor within communication and entertainment in the Nordics... when this stake was for sale we thought it would complement Tele2 and MTG in our portfolio," said Kinnevik CEO Joakim Andersson
* "We think Com Hem is a strong and good company with good growth, good profitability and good cash generator."
* Kinnevik becomes the biggest owner of Com Hem as it bought the stake from NorCell, the indirect investment holding company of funds advised by BC Partners LLP, for a cash consideration of SEK 110 per share, a total of SEK 3.7 billion
* "We have a strong balance sheet... after the Com Hem acquisition we have a leverage of 4 percent (vs target of not exceeding 10 pct), so we have room for more investments."
* "We think Kinnevik is paying a high price," said Swedbank analyst Stefan Ward, who has recommendation "strong buy" on Kinnevik and a target price of 282 SEK
* Closing is expected to occur on May 4. The acquisition will be fully financed by cash at hand and existing credit facilities and capital market programs
* Kinnevik Says Net Asset Value (NAV) of SEK 79.5 bln (SEK 289 per share), up 10 pct or SEK 7.1 bln in the quarter
* Says rise in NAV led by a SEK 7.3 bln, or 12 pct, increase in the value of the listed investee companies, of which Millicom SEK 4.1 bln and Tele2 SEK 1.9 bln Source text for Eikon: Further company coverage: (Reporting By Olof Swahnberg, editing by Terje Solsvik)