Rocket Internet sells 9.1% stake in Lazada for USD 137 million
12 APRIL 2016, BERLIN
Summary-Rocket Internet has agreed to sell a 9.1% stake, on a fully diluted basis, in Lazada Group S.A. (“Lazada”) for a gross consideration of USD 137 million to Alibaba Group Holding Limited (“Alibaba”) -Lazada and Alibaba entered into a transaction that includes Alibaba’s investment of USD 500 million in Lazada -Alibaba will become Lazada’s new controlling shareholder -Rocket Internet’s retains a fully diluted stake after the transaction and taking into account Alibaba’s investment of new funds of 8.8%
Berlin, Germany, April 12, 2016 – Rocket Internet has agreed to sell a 9.1% stake, on a fully diluted basis, in Lazada for USD 137 million. Founded in 2012, Lazada is the one-stop eCommerce gateway for local and international sellers and brands to the consumers in six distinct Southeast Asian markets: Indonesia, Malaysia, the Philippines, Singapore Thailand and Vietnam.
Lazada and Alibaba also entered into a transaction that includes Alibaba’s investment of USD 500 million in Lazada. Alibaba will become the controlling shareholder of Lazada after the transaction. The transaction equates to an equity valuation of Lazada of USD 1.5 billion.
Rocket Internet’s remaining fully diluted stake after the transaction and taking into account Alibaba’s investment of new funds is 8.8%.
The valuation of Rocket Internet’s stake represents an approximately 15x multiple of Rocket Internet’s total invested capital of EUR 18 million.
Shareholders, including Rocket Internet, have also entered into a put-call arrangement with Alibaba, giving the buyer the right to purchase, and the shareholders the right to sell collectively, their remaining stakes at fair market value within the 12 to 18 month period post closing of the transaction.
Oliver Samwer, CEO of Rocket Internet, commented: “This transaction is a key milestone for Lazada as it underlines its position as leading online platform in South-East Asia. Alibaba as the new major shareholder is further strengthening this position and provides the basis for significant future growth given Alibaba’s strong strategic position in the region. We are looking forward to working with Alibaba and the existing Lazada shareholders to support Lazada in building the leading ecommerce franchise in South East Asia.”
Maximilian Bittner, CEO of Lazada added, “we are very excited about joining forces with Alibaba and see significant synergies that will drive great benefits to our customers, sellers, brands and the broader eCommerce ecosystem in Southeast Asia. The transaction will help us to accelerate our goal to provide the 550 million consumers in the region access to the broadest and most unique assortment range.”
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About Rocket Internet
Rocket Internet's mission is to become the world's largest Internet platform outside of the United States and China. Rocket Internet 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 Internet is focused on online business models that satisfy basic consumer needs across the following sectors: Food & Groceries, Fashion, General Merchandise, Home & Living and Travel. Rocket Internet started in 2007 and has now more than 36,000 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 contains forward-looking statements. These statements are based on the current views, expectations and assumptions of the management of Rocket Internet SE ("Rocket Internet") and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those described in such statements due to, among other things, changes in the general economic and competitive environment, risks associated with capital markets, currency exchange rate fluctuations and competition from other companies, changes in international and national laws and regulations, in particular with respect to tax laws and regulations, and other factors. Rocket Internet does not assume any obligations to update any forward-looking statements.
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About Rocket Internet
About Rocket Internet
Rocket Internet incubates and invests in Internet companies with proven business models. It provides operational support to its companies and helps them scale internationally. Rocket Internet focuses predominantly on four industry sectors of online and mobile retail and services that make up a significant share of consumer spending: Food & Groceries, Fashion, General Merchandise and Home & Living. Rocket Internet’s selected companies are active in a large number of countries around the world with more than 28,000 employees. Rocket Internet SE is listed on the Frankfurt Stock Exchange (ISIN DE000A12UKK6, RKET). For further information please visit www.rocket-internet.com.