PLDT keeping remaining shares in Rocket Internet

MANILA, Philippines — Telco giant PLDT Inc. is holding on to its remaining shares in European internet company Rocket Internet after selling the bulk of its stake last month. 

PLDT chairman and chief executive officer Manuel V. Pangilinan said the telco would be flexible in the timing of divestment of remaining shares in Rocket.

“There is no pressure on the part of PLDT to divest quickly. For the meantime, the position is to hold on to those shares of Rocket Internet,” he said. 

Last month, PLDT through indirect subsidiary PLDT Online Investments Pte. Ltd. completed the sale of 6.8 million shares in Rocket by selling those back to the internet company at a total value of 163.2 million euros or P10 billion. 

These share are equivalent to PLDT’s 6.1 percent stake in the internet company. 

Following the transaction, PLDT has about two to three percent stake left in Rocket valued at P5 billion. 

Pangilinan said earlier, the sale of PLDT’s position in Rocket would allow the telco to fund capital expenditures this year. 

PLDT set its capex at P58 billion this year, the highest amount earmarked ever by the telco. 

The bulk or 53 percent of this year’s capex is intended to be used for the fixed network business to provide fiber broadband service to customers given growing demand for digital services.

PLDT invested 333 million euros for a 10 percent stake in Rocket in 2014. 

The stake was diluted after Rocket went public.

Rocket is involved in investing in technology companies, as well as providing support to help such grow internationally.

The internet company focuses predominantly on four sectors such as food and groceries, fashion, general merchandise, and home and living.