International TMT law firm Olswang has advised the leading telecoms operator in the Philippines, Philippine Long Distance Telephone Company (PLDT), on the establishment of a strategic cooperation with Germany's largest Internet-startup incubator, Rocket Internet AG, to develop online and mobile payment solutions. Under the terms of the partnership agreement PLDT will invest €333m for a 10 percent stake in Berlin-based Rocket Internet.
As part of the investment, PLDT will hold the right to appoint one member of Rocket Internet's supervisory board. PLDT joins Sweden's Investment AB Kinnevik and US-based Access Industries as the third external investor in Rocket Internet, in addition to Global Founders GmbH, which is owned by the Samwer brothers who founded Rocket Internet.
PLDT and Rocket Internet will jointly develop mobile and online payment technologies and services in emerging markets. The cooperation will leverage PLDT's experience and intellectual property in mobile payments and remittance platforms, together with Rocket Internet's global technology platform, to provide products and services for the "unbanked, uncarded and unconnected" population in emerging markets.
PLDT is the largest telecommunications service provider in the Philippines. Through its principal business groups - fixed line, wireless and others - PLDT offers a wide range of telecommunications services across the Philippines' most extensive fibre optic backbone and fixed line and cellular networks. PLDT's wireless subsidiary, Smart Communications Inc., is a global pioneer in mobile banking and mobile wallet services. It has introduced several world-first mobile payment innovations in domestic and global markets.
Rocket Internet provides a platform for the rapid creation and scaling of consumer Internet businesses outside the U.S. and China. Its most prominent brands include leading Southeast Asian e-commerce businesses Zalora and Lazada, as well as fast growing brands with strong positions in their markets such as Dafiti, Linio, Jumia, Namshi, Lamoda, Jabong, Westwing, Home24 and HelloFresh, in Latin America, Africa, Middle East, Russia, India and Europe.
An international team from Olswang's German and Singapore offices acted for PLDT on corporate, tax, employment, data protection and commercial aspects of this deal. The cross-border team was led by Berlin-based Partners Thomas Schubert and Peter Schorling, with assistance from Singapore-based Partner Ian Ferguson.
Partner Thomas Schubert commented: "It's been great to help one of the most prominent telecoms players in South East Asia to enter the European market. The opportunities in digital payments are huge globally, but even more so in emerging markets, so this JV hits the right spots in terms of growth capabilities and market disruption, as well as expertise sharing and reach expansion. "
Partner Ian Ferguson added: "This deal was the perfect fit for Olswang, as we were able to provide PLDT with integrated European and Asian M&A and commercial expertise as well as knowledge of the TMT sectors. With a track-record of working in converging TMT markets and a presence in both Germany and Singapore, Olswang was the obvious choice for this transaction."
The extended Olswang team included German-based tax Partner Georg von Wallis and commercial and data protection Partner Andreas Splittgerber as well as corporate senior associates Henrik Armah and Nicolai Lagoni. Corporate associates Oliver Markmann and Martin Dobias also worked on the transaction, together with tax, employment and commercial associates Claudia Stremel, Luisa Einsporn, Monika Stöhr, Martin Culinovic and Hanna Steinbach. In Singapore the team was supported by corporate associates Elizabeth Maynard and Lucy Berry and consultant Azmul Haque.
