Another sell-off has been activated by Sweden’s Millicom. The group has announced that it has sold 8.4% of the shares in BIMA.
Millicom said the transaction will see Allianz X investing $96.6 m in the micro-insurance business.
The company said in a statement that as a result of the transaction, Millicom receives $24 million in cash. BIMA is a digital micro-insurer utilizing mobile technology to serve low-income customers in Africa, Asia and Latin America.
BIMA’s proprietary technology provides insurance and health products to emerging markets customers. Since launching in 2010, BIMA has scaled operations in 14 countries and has 24 million registered customers to date.
Mauricio Ramos, CEO of Millicom, commented: “Being one of the founding shareholders of BIMA, we see this new strategic investment of a leading insurance company such as Allianz into the company as a big success, and as a testament that digital technology has the power to transform lives in emerging markets.”
Millicom remains an investor in BIMA who has continued belief in the company’s potential and supports its partnerships in Ghana, Tanzania, Senegal, Honduras and Paraguay.
The sale is part of a larger transaction including sales by shareholders such as Leapfrog, a new investment by Allianz, and additional investment by existing shareholder Kinnevik.