Earlier today, in a virtual-held general meeting at Berlin’s Rocket Internet, the management board and supervisory board moved forward a notion of a capital reduction by the cancellation of up to 27,664,079 shares to be acquired at €35.00 per share, at a total of €968,242,765.00. In doing so, the company aims, "to continue to ensure the long-term focus of its investor base in support of its long-term strategy and objectives, to avoid the impact of negative interest rates on its existing cash balance, and to adjust the company’s share capital and financing structure."
The proposal was met with an overwhelming majority vote of 97.99%.
The buyback window will commence at the stroke of midnight on Wednesday, the 9th of February, and conclude at midnight on the 10th of March, during which time shareholders are entitled to the customary tender process, at a ratio of 4:1. That is to say, 4 tender rights will be required in order to accept the buyback offer for one Rocket Internet share.
Shareholders reserve the right to liquidate their tender rights if they do not wish to participate in the buyback offer, either in part or in whole, to other shareholders retaining the option to acquire additional tender rights.
Effectively, this gives shareholders an option to submit even more tender for Rocket Internet shares than they have listed on their securities accounts.
These tradable tenders will be made available on the Hamburg Stock Exchange and available until two banking days before the end of the buyback period, March 10th.
According to the company, off-market transfers of tender rights are also possible and permissible.
Once shares are acquired through this buyback offer, and all accompanying relevant requirements are fulfilled, Rocket Internet intends to immediately cancel them for the express purpose of capital reduction.
Full minutes of the extraordinary general meeting can be viewed here.