Divestiture of Non-core Takeaway Food Businesses in Spain, Italy, Brazil and Mexico
05 FEBRUARY 2016, BERLIN
Summary• Divestiture of non-core takeaway food businesses for €125 million • Transactions further reduce complexity of Rocket Internet • LPV including net cash position remains at €7.2 billion as of 30 November 2015
- Divestiture of non-core takeaway food businesses for €125 million
- Transactions further reduce complexity of Rocket Internet
- LPV including net cash position remains at €7.2 billion as of 30 November 2015
Berlin 5. February 2016 - Rocket Internet SE (“Rocket Internet” or “the Company”) today announces the divestiture of certain non-core takeaway food operations owned by the Company and foodpanda Group (“foodpanda”) to JustEat plc for €125 million (the “Transaction”) in cash. Rocket Internet has sold its takeaway food businesses in Spain (La Nevera Roja) and Italy (PizzaBo & hellofood Italy), while foodpanda has sold its businesses in Brazil (hellofood Brazil) and Mexico (hellofood Mexico).
The transaction is in line with Rocket Internet’s strategy to divest non-core operations that are not market-leading. The sale of La Nevera Roja and PizzaBo further reduces the complexity of Rocket Internet. The LPV including cash remains at the latest disclosed figure of €7.2billion as of 30 November 2015.
foodpanda remains the market leader in growth markets with a presence in 24 countries. The operations in Brazil and Mexico accounted for less than 5% of foodpanda’s revenues in 2015.
The transactions in Italy, Brazil and Mexico will be completed today. It is anticipated that the transaction in Spain will be completed by the end of Q2 2016, as it is still subject to regulatory approval from the Spanish competition authority, the Comisión Nacional de los Mercados y la Competencia.
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. We are on a very good path to reach our global growth target."
David Buttress, CEO, JUST EAT said: “The acquisitions from Rocket Internet and foodpanda represent a positive step forward for the global online takeaway industry enabling all parties to focus their resources on building bigger and better long term businesses in their key geographies.“
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About Rocket Internet
Rocket's mission is to become the world's largest Internet platform outside of the United States and China. Rocket identifies and builds proven Internet business models and transfers them to new, underserved or untapped markets where it seeks to scale them into market leading online companies. Rocket is focused on online business models that satisfy basic consumer needs across four main sectors: eCommerce, marketplaces, travel and financial technology. Rocket started in 2007 and has now more than 30,000 employees across its network of companies, which are active in more than 110 countries across six continents. Rocket Internet SE is listed on the Frankfurt Stock Exchange (ISIN DE000A12UKK6, RKET). For further information visit www.rocket-internet.com.
This document is being presented solely for informational purposes and should not be treated as giving investment advice. It is not intended to be (and should not be used as) the sole basis of any analysis or other evaluation. All and any evaluations or assessments stated herein represent our personal opinions. We advise you that some of the information is based on statements by third persons, and that no representation or warranty, expressed or implied, is made as to, and no reliance should be place on, the fairness, accuracy, completeness or correctness of this information or opinions contained herein.
This presentation contains certain forward-looking statements relating to the business, financial performance and results of Rocket Internet SE, its subsidiaries and its participations (collectively, “Rocket”) and/or the industry in which Rocket operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words “believes,” “expects,” “predicts,” “intends,” “projects,” “plans,” “estimates,” “aims,” “foresees,” “anticipates,” “targets,” and similar expressions. The forward-looking statements contained in this presentation, including assumptions, opinions and views of Rocket or cited from third party sources, are solely opinions and forecasts which are uncertain and subject to risks. Actual events may differ significantly from any anticipated development due to a number of factors, including without limitation, changes in general economic conditions, in particular economic conditions in the markets in which Rocket operates, changes affecting interest rate levels, changes in competition levels, changes in laws and regulations, environmental damages, the potential impact of legal proceedings and actions and Rocket’s ability to achieve operational synergies from acquisitions. Rocket does not guarantee that the assumptions underlying the forward-looking statements in this presentation are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this presentation or any obligation to update the statements in this presentation to reflect subsequent events. The forward-looking statements in this presentation are made only as of the date hereof. Neither the delivery of this presentation nor any further discussions of Rocket with any of the recipients thereof shall, under any circumstances, create any implication that there has been no change in the affairs of Rocket since such date. Consequently, Rocket does not undertake any obligation to review, update or confirm recipients’ expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of the presentation.
Neither Rocket Internet SE nor any other person shall assume any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or the statements contained herein as to unverified third person statements, any statements of future expectations and other forward-looking statements, or the fairness, accuracy, completeness or correctness of statements contained herein, or otherwise arising in connection with this presentation.
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About Rocket Internet
Rocket Internet builds and invests in Internet companies that take proven online business models to new, fast-growing markets. Rocket Internet focuses on five industry sectors of online and mobile retail services that make up a significant share of consumer spending: Food & Groceries, Fashion, General Merchandise, Home & Living and Travel. Its network of companies conducts business in a large number of countries around the globe with more than 36,000 employees at the end of 2015. Rocket Internet SE is listed on the Frankfurt Stock Exchange (ISIN DE000A12UKK6, RKET). For further information visit www.rocket-internet.com.
Our e-commerce companies include retail companies in the areas of fashion, general merchandise, home and living, office supplies and food and groceries. Our marketplace companies seek to displace traditional supply chains by creating venues where buyers and sellers can transact directly, and include real estate and car online classifieds, travel and transport, and food delivery companies. Our third sector, financial technology, includes companies that focus on bringing together borrowers and lenders in regions and segments that are underserved by traditional banks, particularly in the consumer and small and medium-sized enterprise segments, and on facilitating payments. Our travel companies seize opportunities in the rapidly growing online travel and transport sector. They focus currently on vacation packages and online travel booking.
As part of our global strategy, we have created regional Internet groups in Africa, Asia Pacific and the Middle East in order to bundle local market and business model insights, facilitate regional commercial, strategic and investment partnerships, in particular with mobile telecommunication providers, enable local recruiting and sourcing and accelerate the regional rollout of our companies. We have developed proprietary technology where we believe it provides our companies with a competitive advantage. Our proprietary technology is highly flexible and scalable and provides our companies with significant cost and speed advantages, particularly during their initial rapid launch and rollout processes.
Our platform has enabled us to build a large, global network of companies and has historically put us in a position to launch more than 10 new companies every year through application of a standardized business model identification and development process. Every new company that we start accelerates the virtuous circle of synergy creation among our companies. The larger the size of our network of companies, the more significant our opportunity is to benefit from synergies and network effects with respect to our suppliers, solution providers, customers and employees.