Filipino bands

PLDT buys stake in Rocket Internet

Rappler.com
PLDT buys stake in Rocket Internet
PLDT gets a 10% stake in Rocket Internet, and the two will jointly develop mobile and online payment technologies and services

MANILA, Philippines – The Philippine Long Distance Telephone Company (PLDT) and business incubator Rocket Internet have entered into a global strategic partnership to develop online and mobile payments solutions for emerging markets. 

 

PLDT will invest 333 million euros (US$445 million) for a 10% stake in Rocket Internet, and will jointly develop mobile and online payment technologies and services.


 

Rocket Internet adopts successful business models for and builds new businesses meant for untapped markets.

In the Philippines, the company is known for online commerce sites Lazada and Zalora, as well as taxi booking service EasyTaxi. 

PLDT Chairman Manny V. Pangilinan noted that the move “is in line with PLDT’s strategy of providing relevant and value-enhancing services to its customers.”

Pangilinan added that PLDT “will continue to pursue further digital partnerships as one of our key strategic initiatives to drive growth and create value for our stakeholders, whilst leveraging on PLDT’s unique combination of assets.”

According to a statement from PLDT, PLDT’s investment in Rocket Internet will be in new shares issued by the company, of the same class. These new shares will have the same rights as shares held by current investors. 

Bloomberg adds that, according to people familiar with the matter, Rocket Internet aims to sell these new shares over time, possibly seeking a valuation of as much as 5 billion euros.

PLDT will also have the right to appoint one member of Rocket Internet’s 9-person Supervisory Board.

PLDT is the third external investor in Rocket Internet, joining Investment AB Kinnevik and Access Industries, in addition to Global Founders GmbH.

Oliver Samwer, Founder and CEO of Rocket Internet, said, “Rocket and PLDT share a vision for the growth opportunity of Internet and mobile business models in emerging markets, as smartphone penetration increases exponentially.” 

“We believe in our ability to create significant value together, leveraging the Rocket platform and PLDT’s expertise,” he added. – Rappler.com

Add a comment

Sort by

There are no comments yet. Add your comment to start the conversation.