Rocket Internet to receive US$ 419 million from Millicon for intercontinental online ventures

Millicom from today can increase its stakes up to 50% in Rocket Internet’s Latin America Internet Holding (“LIH”) and Africa Internet Holding (“AIH”).

The four year partnership gives Millicom an option to acquire more stakes in the two Rocket Internet’s firms without management rights over 24 months.

Millicon can however acquire the remaining 50% of these two holdings with full management rights by no later than September 2016 at fair market value.

Rocket Internet expects to receive approximately US$ 419 million for the first 50 percent of the stake in three instalments expected to begin in the last quarter of this year.

The Rocket Internet subsidiaries run firms in e-Commerce, Marketplaces,Subscription, Lead Generation and Payments.

LIH and AIH currently operate 8 businesses with 2012 revenues approximately US 43 million. Plans are also underway by the partners to launch a number of new businesses in both Latin America and Africa for the next 3 years.

Millicom’s President and CEO Mikael Grahne said: “We are pleased to partner with Rocket Internet to develop an online and e-commerce franchise in Latin America and Africa, where these promising sectors are nascent. Rocket Internet has a proven track record of rapidly developing successful operations in the online and e-commerce sectors.

Grahne said Millicon expect to reinforce their growth profile with the partnership.
He said; “This investment is fully in line with our objective to strike the right balance between growth and returns. The fact that we invest gradually and that we are partnering with proven experts in the online industry should facilitate speed of execution and likelihood of success while limiting risks.”

Millicom will fully consolidate the businesses after the closing period and acquire a 20 percent shareholding in both LIH and AIH.

Millicom operates globally. In Chad as Millicom Tchad with 100 percent shareholding, in DRC as Oasis with 100 percent stake, in Ghana as Mobitel with 100 percent shareholding, in Mauritius as Emtel with 50 percent while owns Tigo Rwanda SA87.50 and owns Senegal SENTELgsm 100 percent while in Tanzania as Mobitel with 100 percent.

Millicom International Cellular S.A. operates mobile telephony networks in 13 countries in Latin America and Africa. The firm also runs fixed telephony, cable and broadband businesses in five countries in Central America. Samwer brothers founded Rocket Internet in 2007. The company incubates and develops and owns companies in e-commerce and other online, consumer-oriented companies.

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