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ARTICLE | Financial News

Rosetta syndicate acquiring stake in Karolinska companies

December 22, 2012 1:33 AM UTC

A syndicate led by VC firm Rosetta Capital Ltd. will pay SEK220 million ($33 million) to acquire a minority stake in KDev Investments AB, a new private holding company created to house 13 portfolio companies of Karolinska Development AB (SSE:KDEV). Karolinska will transfer the companies to KDev, and Rosetta will acquire 7.33% of the holding company's common shares. Rosetta will also receive all the "preference" shares in the holding company. Karolinska said the preference shares entitle Rosetta to a tiered "priority on future returns" from the KDev portfolio companies, starting with 100% of future returns up to SEK220 million ($33 million) and with no portion of returns over SEK1.3 billion ($198.1 million).

Karolinska will receive a first tranche of SEK203 million ($30.5 million) when the deal is completed, which is expected on Jan. 31, 2013, and a second tranche when the total accumulated return from the KDev portfolio has reached SEK17 million ($2.6 million). Rosetta will also receive board seats on undisclosed companies. Karolinska said the deal implies a total value for the 13 companies of about SEK1.5 billion ($225.2 million). ...