Rocket Internet wants to go back to being a free and autonomous opportunistic investor. Anonymous sources are on record that Oliver Samwer, CEO and co-founder, has grown tired of the reporting requirements that are in place for listed companies.
Sources cited by Manager Magazin have found out that Rocket Internet is on its way off the stock market. Samwer also told confidants that being off the market again would allow his company to invest with a lot more freedom. Ecommercenews.eu also reported that the startups founded and backed by Rocket Internet could be more frugal and tactical with their financial round information.
Making The Change
The only thing keeping Samwer and Rocket from taking the step is the current market valuation. Just this morning, the Rocket Internet share price was under €26. However, preparations are moving forward for privatization. Rocket's supervisory board has already talked about the issue and is working on the foundation of a successful deal.
Dealing With Shareholders
The most probable thing that can happen is that Rocket Internet buys its shares back from the shareholders. That means Mr. Samwer would own 75% of Rocket Internet in the end, but the final decision has not been made. There are two major shareholders that will need to be convinced that the change is a good idea. German network provider United Internet and UK investment firm Baillie Gifford, who together own 16% of Rocket Internet, will need to sell.
Rocket Internet has many investments in companies like Delivery Hero, HelloFresh, Jumia, Lamudi, Spotcap, Westwing and Zalando. For those who don't already know, Zalando is a major online platform from Germany, and is recognized as one of the major success stories in European e-commerce.