Philippine telco PLDT buys 10% stake in Rocket Internet for 333 million euros, valuing it at 3.3 billion euros ($4.4 billion)

Philippine Long Distance Telephone Company (PLDT), the largest telecommunications company in the Philippines, is buying a 10 percent stake in German tech startup incubator Rocket Internet.

PLDT - Philippine Long Distance Telephone Company

Philippine Long Distance Telephone Company (PLDT), the largest telecommunications company in the Philippines, is buying a 10 percent stake in German tech startup incubator Rocket Internet.

PLDT acquired the stake through a 333 million euro (approximately $445 million) directed share issue subscribed for in cash, thus valuing the Samwer brothers' e-commerce focused "company cloning factory" at 3.3 billion euros (a little over $4.4 billion).

ALSO READ: Everything you always wanted to know about Rocket Internet (stats galore)

In a statement, PLDT said it has entered into a global strategic partnership with Rocket Internet, which is reportedly planning an IPO later this year, "to drive the development of online and mobile payment solutions in emerging markets."

As part of the investment, PLDT will hold the right to appoint one member of Rocket's nine-person Supervisory Board.

Even post-closing of the deal, Swedish investment firm Kinnevik will remain Rocket Internet's second-largest shareholder (after the Samwers) with a 21.5% interest.

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