Philippine incumbent Philippine Long Distance Telephone Company (PLDT) has agreed to buy a 10% stake in Germany’s Rocket Internet for €330m (US$441.5m).
The Manila-based telco and Berlin-based internet firm announced in a joint statement today that…
Philippine incumbent Philippine Long Distance Telephone Company (PLDT) has agreed to buy a 10% stake in Germany’s Rocket Internet for €330m (US$441.5m).
The Manila-based telco and Berlin-based internet firm announced in a joint statement today that they have entered into a global strategic partnership to boost the development of online and mobile payment technologies and services in emerging markets.
PLDT CEO Napoleon Nazareno said the company’s investment reflects its “commitment to the global internet market and our belief in the powerful synergies between e-commerce and mobile payments, particularly in developing economies”.
The telco intends to fund the deal with available cash and new debt. It claimed the deal will have no significant impact on its leverage ratios and financing costs.
PLDT will acquire new shares in Rocket and also gain the right to appoint one member to the internet firm’s nine-person supervisory board.
Rocket, active in more than 100 countries with a focus on emerging markets, has reportedly been considering an IPO on the Frankfurt stock exchange later in the year. The firm has hired JP Morgan, Morgan Stanley and Berenberg Bank for the potential listing, which could take place as early as next month and aim for a valuation of up to €5bn (US$6.68bn), the Wall Street Journal cited people familiar with the matter as saying.
Founded in 2007, Rocket provides a platform for the development of internet businesses outside the US and China. Its stated aim is to become the world’s largest internet platform outside these two countries. The company claims to have generated more than €700m in revenues in 2013.
Late last year, South African telco MTN and Rocket Internet agreed to form a joint venture to provide online retail and digital services in the Middle East.
Rocket’s current investors include Swedish investment firm Kinnevik, American holding company Access Industries and venture fund Global Founders –formerly the European Founders Fund.
