Kinnevik’s stake of 54 million shares represents 21% of total shares outstanding in Zalando.
Shares in the German online fashion giant fell 6.2% in Wednesday’s early trade, while Kinnevik dropped 3.0%.
Kinnevik’s shares have surged more than 200% from lows in March, with many of its holdings seeing rapid growth in the midst of the pandemic, helped by the portfolio’s focus on digital businesses.
The proposal to distribute Zalando will be submitted at Kinnevik’s annual shareholder meeting on April 29, and is expected to be finalized during the second quarter.
“The investment in Zalando has been instrumental in establishing Kinnevik as the leading listed European growth investor in tech-enabled businesses,” Kinnevik Chief Executive Georgi Ganev said in a statement.