Kinnevik sells half of its stake in Rocket Internet for $218 million

Swedish Investment company, Kinnevik AB, has sold half of its 13% stake in German eCommerce company, Rocket Internet for €207 million (approximately $218 million) in gross proceeds. Kinnevik sold 10.9 million shares overnight for 19.25 euros each, a 10 percent discount to the closing price.

Kinnevik first backed Rocket Internet in 2010 as the one of the internet investor’s largest outside shareholders. According to Bloomberg’s Gadfly column, the investment has generated an annualized internal rate of return of 91%. Following the transaction, Kinnevik will still hold 10.9 million shares in Rocket Internet, which is  approximately 6.6% of the company’s issued share capital.

Rocket Internet’s share price closed down 2.1 percent shortly before the announcement of the sale.

Reuters reports that Kinnevik would eventually part ways with Rocket as Kinnevik shifts its investments into education, financial technology and healthcare.

Rocket Internet was founded by brothers Oliver, Alexander and Marc Samwer in 2007. It has built up dozens of start-ups from fashion e-commerce to food delivery. The eCommerce giant has a stake in e-commerce company Africa Internet Group, the owner of several African e-commerce businesses through the Jumia platform.