PLDT gets new partner in Rocket Internet AG

Philippine Long Distance Telephone Co. (PLDT) has so far scored big with its latest European tech investment, Rocket Internet AG, which is now worth 1 billion euros more than it was two weeks ago following the entry of a new backer.

PLDT said in a stock exchange filing on Monday that United Internet AG, which claims to be Europe’s leading Internet specialist, was investing 435 million euros to acquire a 10.7-percent stake in Rocket Internet, which is behind popular online retailers like Lazada and Zalora.

The investment by United Internet valued 100 percent of Rocket Internet, which has yet to turn a profit, at about 4.3 billion euros against the 3.3 billion euros that PLDT had valued the e-commerce giant last Aug 7, when its investment was announced.

The deal mainly consisted of new Rocket shares, meaning existing stockholders like PLDT would see their stake diluted.

Still, PLDT’s own 8.6-percent stake in the company was worth about 370 million euros based on the new valuation of Rocket Internet against its 333-million euros investment, Inquirer calculations showed.

PLDT said last Aug. 7 that the investment in Rocket was aimed at co-developing new products and services “to provide products and services for the “unbanked, uncarded and unconnected” population in emerging markets” outside the United States and China.

Rocket reported revenues of over 700 million euros last year but PLDT chair Manuel V. Pangilinan said the company has yet to post a profit since it was established in 2007.

Pangilinan confirmed last Aug. 7 that Rocket Internet was keen on raising additional funds, and an initial public offering was being considered.

Based on the filing on Monday, United Internet would pay 333 million euros in cash and 102 million euros represented by United Internet’s equity participation in the portfolio of Global Founders Capital funds, the personal investment vehicle of Rocket CEO and founder Oliver Samwer and his brothers.