Rocket Internet to delist to enable long-term investing (updated)

home24 SE

01/09/2020 08:35

* Rocket to offer 18.57 euros per share in delisting and buy
back
    * Founder and CEO Oliver Samwer to keep his 4.5% stake
    * Rocket shares have slumped from 42.50 offer price in 2014
    * Extraordinary shareholders meeting set for Sept. 24

 (Adds details, background)
    BERLIN, Sept 1 (Reuters) - German tech investment company
Rocket Internet  RKET.DE  said on Tuesday it plans to delist its
shares as it has sufficient access to capital outside the stock
exchange and can better pursue a long-term approach to
investing.
    Investors have long suggested that Rocket Internet, with a
market capitalisation of 2.6 billion euros ($3.12 billion),
would be better off going private again since it successfully
listed all the major firms it helped found, including Delivery
Hero DHER.DE , HelloFresh HFGG.DE  and Home24 H24.DE .
    "The significance of capital markets as a financing source
has diminished. A delisting will permit Rocket Internet to
pursue a long-term approach in its strategic decisions," the
company said in a statement.
    Listed on the Frankfurt stock exchange in 2014, Rocket's
shares have mostly traded well below their issue price of 42.50
euros and below the combined value of the cash on its balance
sheet and its own valuation of its remaining investments.
    In its latest financial results, published in May, Rocket
Internet said it had 1.9 billion euros of net cash as of April
30 and valued its investments in more than 200 private companies
at 1 billion euros as of March 31.
    Rocket Internet said it would offer 18.57 euros for its
shares in the delisting. The stock closed on Monday at 18.95
euros and was up 1.5% on Tuesday morning. 
    Oliver Samwer, the company's founder and chief executive 
whose investments in tech companies have made him one of
Germany’s richest men, will hang on to his 4.53% stake in the
company, as would his Global Founders fund which holds 45%.
    Rocket said it would buy back 8.84% of the share capital for
18.57 euros per share up to Sept. 15 and would seek
authorisation to buy back up to another 10% at an extraordinary
shareholders' meeting called for Sept. 24 to decide on the
offer. The rest of the shares are held by public and
institutional investors.
      
    ($1 = 0.8344 euros)

 (Reporting by Emma Thomasson
Editing by Riham Alkousaa and Susan Fenton)
 ((+49 30 2888 5081; Reuters Messaging:
emma.thomasson.thomsonreuters.com@reuters.net))