Nelnet Inc. has announced the redemption of certain membership interests in ALLO Holdings LLC, resulting in cash proceeds of $411 million. This transaction involved the redemption of a portion of Nelnet's voting membership interests and all of its outstanding preferred membership interests in ALLO, along with the accrued preferred return through June 3, 2025. Following the redemption, Nelnet reported a pre-tax gain of $175 million and now holds a 27% voting equity stake in ALLO, down from 45%. Despite the reduction in ownership, Nelnet maintains a significant investment in ALLO.
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