PLDT to acquire 10% of Rocket Internet
Philippine Long Distance Telephone (PLDT) has agreed to acquire a 10% stake in German company Rocket Internet for €333 million.
PLDT will now develop a mobile and online payment system in emerging markets, and Rocket will issue new shares to the carrier.
Rocket said it had primarily struck the deal with PLDT in a bid to tap into the company’s developments in finance technology.
“Financial technology is a key focus sector for Rocket and this partnership will allow us to build on PLDT’s world-class innovations in mobile money and micro-payments,” said Oliver Samwer, founder and CEO at Rocket.
Rocket is tailoring its strategy towards creating an internet business outside the US and China in a bid to replicate the success of both Amazon and Alibaba in a range of emerging markets.
PLDT will finance the investment from available cash and new debt.