PLDT investment soars: Philippine firm’s Rocket stake now worth 493.6-M euros

MANILA, Philippines -The value of the investment of dominant carrier Philippine Long Distance Telephone Co. (PLDT) in Berlin-based Rocket Internet AG has gone up close to €500 million despite the reduction in its shareholding amid the series of fund raising activities by the German firm.

PLDT spokesman Ramon Isberto said the value of the company’s investment in the German firm surged 48 percent to €493.6 million from €333 million barely six months after it bought into the Internet company.

Rocket Internet generated €588.5 million after it increased its share capital through partial utilization of its authorized capital under the exclusion of shareholders’ subscription rights to €165.14 million from €153.13.

The 12.01 million new no-par value ordinary bearer shares priced at €49 per share were placed in a private placement with institutional investors by way of an accelerated bookbuilding process late last week.

The issue price of €49 per share translates to a market capitalization of €8.09 billion for Rocket Internet.

Isberto said the fund raising activity would dilute PLDT’s stake in Rocket Internet further to 6.1 percent from 6.6 percent.

 “Assuming at 7.8 percent capital increase, PLDT’s 6.6 percent stake would be reduced at 6.1 percent with €493.6 million value which is still 48 percent higher than our initial investment of €333 million,” he added.

The PLDT Group made its biggest foreign investment when it spent €333 million to acquire a 10 percent stake in Rocket Internet last Aug. 7. The stake of PLDT in Rocket Internet was diluted to 6.6 percent after the German firm went public.

Last month, PLDT’s Smart Communications Inc. through Through Voyager Innovations Inc. announced it was initially investing €30 million for a 33.3 percent stake in a joint venture company with Rocket Internet to focus on online business development in the Philippines.

On the other hand, Asia Pacific Internet Group - 50 percent owned by Rocket Internet - would have a 66.7 percent in the new joint venture company to be called Philippine Internet Group (PHIG).

The unit of Smart has an option to increase its stake to 50 percent in the new online enterprise that would bundle activities of existing high-growth companies and numerous models to be launched in the coming years

Following the successful model of Rocket Internet’s four existing Regional Internet Groups, PHIG would leverage local market and business model insights, facilitate commercial, strategic and investment partnerships, enable local recruiting and sourcing and accelerate the rollout of online startups.

It would drive the activities of high-growth companies that are already operating in the Philippines like Lamudi, Carmudi, Clickbus and Pricepanda, and aims to launch numerous new companies in the coming quarters.