PLDT to fully pay biggest overseas investment

MANILA, Philippines - Dominant carrier Philippine Long Distance Telephone Co. (PLDT) is set to fully settle its biggest overseas investments amounting to 333 million euros in Rocket International AG of Germany.

PLDT said in a statement that it would now pay in full the remaining 50 percent of its investments in the German firm that is set to go public through an initial public offering (IPO) at the Frankfurt Stock Exchange later this year to raise 750 million euros.

“Following the announcement of Rocket’s intention to proceed with the IPO, PLDT will now pay in full the remaining 50 percent of its investments in Rocket,” the company said.

Last Aug. 7, PLDT chairman Manuel V. Pangilinan announced the company’s biggest overseas investments after closing a deal acquiring a 10 percent stake in Rocket Internet worth close to P20 billion.

PLDT has already made an initial payment of 50 percent while the remaining 50 percent was supposed to be paid within a period of 12 months upon the achievement of certain milestones.

PLDT’s stake in Rocket Internet has been diluted to 8.4 percent from 10 percent with the entry of new strategic investors.

Aside from PLDT, other shareholders include Global Founders GmbH with 52.3 percent, Investment AB Kinnevik with 18.1 percent, United Internet with 10.4 percent, Access Industries with 8.3 percent, and HV Holtzbrinkck Ventures with 2.5 percent.

“All existing shareholders of Rocket Internet will remain invested and will not sell any shares as part of the offering. All six shareholders have signed lock up commitments not to sell or otherwise dispose of their shares for at least 12 months,” PLDT said in the statement.

Rocket Internet intends to use the proceeds of the fund raising activity to finance its future growth through the launch of new business and providing further equity capital to its network of companies.

Rocket Internet provides a platform for the rapid creation and scaling of consumer internet businesses outside the U.S. 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.