MANILA, Philippines - The stake of dominant carrier Philippine Long Distance Telephone Co. (PLDT) in newly acquired Berlin-based Rocket Internet AG was diluted to 8.6 percent from 10 percent with the entry of Europe’s leading Internet specialist.
PLDT said yesterday it welcomes the entry of United Internet AG into Rocket Internet where it is investing about $582.7 million (435 million euros) for a 10.7 percent stake.
Under the terms of the partnership agreement announced last Aug. 15, United Internet’s investment in Rocket Internet would consist of $446 million (333 million euros) in cash and $136.6 million (102 million euros) represented by its equity participation in the portfolio of Global Founders Capital funds.
As part of the transaction, the equity participation of Global Founder in Global Founders Capital worth $204.9 million (153 million euros) would be contributed into Rocket International, hiking its investments to $787.6 million (588 million euros) or a 53.7 percent in the $5.76 billion (4.3 billion euros) Internet firm.
United Internet is Europe’s leading Internet specialist with 13.87 million fee-based contracts and 31.44 million ad-financed free accounts. The company is a member of the German Stock Index TecDAX and its shares are being traded in the Prime Standard of the Frankfurt Stock Exchange.
PLDT said its stake in the German internet firm would be diluted to 8.6 percent followed by Access Industries with 8.5 percent, United Internet with 10.7 percent, and Investment AB Kinnevik with 18.5 percent.
Last Aug. 7, PLDT chairman Manuel V. Pangilinan announced its biggest overseas investments worth $446 million (333 million euros) for a 10-percent stake in Rocket Internet.
PLDT said the new partnership would leverage the company’s experience and intellectual property in mobile payments and remittance platforms together with Rocket Internet’s global technology platform to provide products and services for the “unbanked, uncarded, and unconnected” population in emerging markets.
PLDT and Rocket Internet intends to establish a joint venture to explore online and mobile e-payment applications in the
Philippines and throughout the Rocket network of companies worldwide.
Rocket Internet provides a platform for the rapid creation and scaling of consumer internet businesses outside the US and China. It has more than 20,000 employees in its network of companies across over 100 countries, with aggregated revenues in excess of €700 million in 2013.
Its most prominent brands include leading Southeast Asian e-Commerce businesses Zalora and Lazada, as well as fast growing brands with strong positions in their markets such as Dafiti, Linio, Jumia, Namshi, Lamoda, Jabong, Westwing, Home24 and HelloFresh, in Latin America, Africa, Middle East, Russia, India and Europe.
Rocket Internet’s mission is to become the world’s largest internet platform outside of the US and China. It continues to expand its businesses in Asia, Africa, the Middle East, Latin America and Europe focusing on e-commerce, marketplaces and financial service applications.