Rocket Internet today announced that it's selling its takeaway food ordering properties in Spain (La Nevera Roja), Italy (Pizzabo and hellofood Italy) as well as subsidiary foodpanda's operations in Brazil and Mexico to rival Just Eat for €125 million to "reduce complexity".
In a sign that its falling stock price is forcing it to make these kinds of decisions, Rocket says they businesses represent 'non-core operations' and are 'not market-leading'.
Rocket says the transactions in Italy and Latin America will be completed today. The transaction in Spain - accurately reported by our own Jaime Novoa on his blog Novobrief - will be completed by the end of the second quarter of this year, pending approval from the Spanish competition watchdog.
Oliver Samwer, CEO of Rocket Internet commented: “The online takeaway market remains a core focus of Rocket Internet’s business strategy with the significant ownership in the market leaders Delivery Hero and foodpanda. Today’s transactions are clearly aimed at reducing the complexity of Rocket Internet’s network of companies.”
Ralf Wenzel, Co-founder and CEO of foodpanda said: “The divestment in Latin America allows us to focus on our key markets across Asia, the Middle East and Eastern Europe where foodpanda has a market leading position and to which we can now dedicate more resources and capital to grow our business and improve the efficiency of our operations."