Rocket Internet To Remove Its Shares Enable Long-Term Investing Plans

Rocket Internet happens to be a well-known German tech company. It has its headquarters based in Berlin.

This Tuesday, the company decided to withdraw its shares from the stock exchange so that they can aim for a long-term investing plan. The company came up with such a decision after they realised that they have enough capital to use outside the share market. 

In the past, many big investors have suggested that the company should go private again. That’s because they have listed all the big firms successfully. 

This includes Home24, Delivery Hero, and HelloFresh. Rocket Internet has a market value of EUR 2.6 billion which is roughly Rs. 22,734 crores. 

The company mentioned in one its statement that the importance of capital markets to provide financial resources have reduced. By withdrawing their shares from the stock exchange will help the company to approach a long-term investing plan as a part of their strategic decisions.

As per the listing on the Frankfurt share exchange in 2014, the company’s shares have traded well. They have traded below the valuation of their investments and joined the value of money on their balance sheet.

In May, they published a financial report, according to which the company had EUR 1.9 billion which is roughly Rs. 16,608 crores of total cash as of 30th April. Their investments were valued in over 200 private firms at EUR 1 billion which is roughly Rs. 8,743 crores) as of 31st March.

The company said that they willing to provide EUR 18.57 which is roughly Rs. 1,623 for its stocks in their withdrawal. The stock was closed this week on Monday at a valuation of EUR 18.95 which is roughly Rs. 1,656. It was about 1.5 percent on the next day morning.

Oliver Samwer who happens to be the company’s founder and CEO has become the richest man in Germany because of his investments in tech companies. It is reported that he will stick to his 4.53 percent stake in the firm. His Global Founders fund holds around 45 percent.

The company also said that they are going to buy back around 8.84 percent of their total share capital for EUR 18.57 which is roughly Rs. 1,623 for every share up to 15th September. Not just that, but they will also try to acquire the authorisation to get back up to another 10 percent of their shares. They are planning to do so at the shareholders’ meeting on 24th September where they will decide about the offer. The remaining shares will be held by institutional investors and the public.

Rocket Internet is very firm with their decision. They have already announced about withdrawing their shares from the stock exchange to pursue their long-term investment plans. The work is in progress and further details will be announced by the company, once they are done.

For those who do not know Rocket Internet is one of the biggest tech companies in Germany.