PLDT invests $445-M in Rocket Internet to drive online, mobile solutions

MANILA — The Philippine Long Distance Telephone Company (PLDT) announced Thursday its move to buy a 10 per cent stake in German firm, Rocket Internet for 333 million euros (US $ 445 million).

During a press conference, PLDT president and CEO Napoleon L. Nazareno said the partnership between the two companies would help drive the development of online and mobile payment solutions in emerging markets.

The partnership will enhance PLDT’s experience and intellectual property in mobile payments and remittance platforms with Rocket’s global technology platform.

PLDT’s investment in Rocket will be in new shares issued by the company, of the same class and bearing the same rights as shares held by current investors.

It will also hold the right to appoint one member of Rocket’s nine-person Supervisory Board and fund the investment from available cash and new debt, with no significant impact on PLDT’s leverage ratios and funding costs.

With the promising partnership with Rocket, Nazareno said that PLDT’s investment demonstrates synergies between e-Commerce and mobile payments in developing economies.

“The strategic partnership will allow us to leverage our combined strengths,” Nazareno said. “We expect the partnership to have a pronounced positive impact on our organization,”

He further said that Rocket has developed a unique platform for establishing new Internet companies and a proven track record in successfully rolling out businesses in fast growing markets.

For his part, PLDT Chairman Manuel V. Pangilinan, meanwhile, vowed to continue to pursue further digital partnerships as one of the company’s key strategic initiatives.