Rocket Internet builds out stake in Delivery Hero and increases share in foodpanda

Today, Rocket Internet AG (“Rocket Internet”, “Rocket”, ISIN DE000A12UKK6, RKET) announced key strategic transactions to further strengthen its market leading position in the global online takeaway market.

Capitalizing on the significant and rapidly developing opportunities in the online food & groceries sector, Rocket increased its ownership in Delivery Hero through the contribution of the recently acquired leading Middle Eastern online food takeaway company Talabat and the acquisition of shares from existing Delivery Hero investors for EUR 52 million. Upon closing of these transactions, Rocket’s stake in Delivery Hero amounts to c. 39%. Based on its scale, geographic coverage and leadership position, Delivery Hero with its 24 countries and 62.6 million annualized orders (based on December 2014) is a key component of the Global Online Takeaway Group, complementing foodpanda and the two recent investments in La Nevera Roja (Spain) and Pizzabo (Italy).

Delivery Hero’s expected Q1 2015 performance is testament to its strong operational and financial profile. The Delivery Hero management foresees order and gross merchandise volume growth of 150%+ relative to the same quarter of the year before with GMV in Q1 expected to amount to around EUR 250 million and net revenues in excess of EUR 30 million (+120% compared to Q1 2014).

Rocket furthermore announced a EUR 104 million funding round in foodpanda to capitalize on the significant growth opportunity and to allow for further selective investments in key markets. Rocket is participating with an investment of EUR 37 million in this funding round, is purchasing additional shares from existing shareholders and has received shares formerly held through Latam Internet Group through a share dividend thus increasing its direct ownership stake in foodpanda from below 50% to ca. 52%. These transactions are subject to closing.

Rocket intends to contribute its 11.4% stake in Yemeksepeti, the online takeaway market leader in Turkey, to the Global Online Takeaway Group. Yemeksepeti is present in 63 cities in Turkey and cooperates with nearly 10,000 restaurants.

Combining all investments in the sector including foodpanda, Delivery Hero, Talabat, La Nevera Roja, Pizzabo and Yemeksepeti, the Global Online Takeaway Group operates today in 71 countries – being number one in 58 of them – and works with 142 thousand restaurants and processes 84 million orders based on annualized December 2014 numbers (only countries include Yemeksepeti).

Oliver Samwer, CEO of Rocket Internet said: “Within the past weeks we have been able to build the Global Online Takeaway Group into a truly global operation, being present in more than 70 countries. Extending our stake in the fast growing Delivery Hero to almost 40% and increasing our direct ownership in the emerging market focused foodpanda are important steps in building the largest and the only truly global online takeaway marketplace in the world.”

Source: Rocket Internet Press Release

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