Delta Partners Corporate Finance has acted as sole strategic and financial advisor on transactions worth more than USD1 billion during the course of 2014, helping telecom operators on the execution of their digital strategy.
These transactions resulted in collaborations between the telecom operators and Rocket Internet, one of the largest internet groups outside the US and China. Rocket Internet has launched more than 100 businesses in over 40 countries to date ranging from e-retailing and online marketplaces to e-payments and finance technology.
The partnerships with the telecom operators will open up many new e-commerce business opportunities in emerging markets. Highlights of the transactions are:
• Advising PLDT on the acquisition of a 10 per cent stake (EUR333 million) in Rocket Internet. The investment allows the establishment of a global partnership with a focus on mobile and online payment solutions.
• Advising Ooredoo on their 50 per cent acquisition (EUR180 million) of Rocket Internet’s Asian platform to jointly develop e-commerce and other digital services across emerging countries in Asia excluding China.
• Advising MTN on the acquisition of 33 per cent stake in the African platform of Rocket Internet and Millicom and 50 per cent stake in Rocket Internet’s Middle Eastern platform. Both stakes are worth EUR288 million and will help develop e-commerce business across Africa and the Middle East.
Fede Membrillera, Delta Partners’ managing partner and head of DPCF, says: “Our TMD-focused expertise, in-depth market knowledge and understanding of both telecom and digital puts us in an excellent position to successfully help our clients bridge both industries. We are firm believers in the value that can be created in the intersection of both worlds.”
Kai-Uwe Ricke, chairman of DPG, says: “These equity partnerships position Delta Partners at the forefront of the telecom-digital convergence as we help our clients venture into the digital space. We expect to see more of such deals in emerging markets as telecom operators and digital players start to see the advantages of leveraging off each other.”
