Stay updated with the latest news from Rocket Internet AG by subscribing for free.
Every morning, you’ll receive a curated email, the myFT Daily Digest, summarizing the most recent developments from Rocket Internet AG.
The owner of Rocket Internet AG, a prominent German technology investment firm, is anticipated to receive an annual dividend of €260 million after establishing control over one of Europe’s leading venture capital groups.
Based on company filings, Financial Times’ calculations reveal that Oliver Samwer’s Global Founders, which the Samwer family uses to control Rocket Internet based in Berlin, is scheduled to receive this substantial payout this year.
Shareholders at Rocket’s upcoming annual general meeting are expected to approve an overall dividend of €315 million, surpassing the previous year’s figure by more than six times.
As Samwer has progressively increased his majority ownership of Rocket, his Global Founders vehicle is entitled to receive €260 million.
This hefty payment to Samwer signifies the company’s shift away from its origins as one of Europe’s most prolific start-up financiers towards a more conservative investment firm focused on generating profits.
Responding to concerns about the broader tech downturn, Rocket has recently downsized its venture funds, closed a start-up fund, and advised nascent companies to reduce spending.
Despite these cutbacks in tech investment, the company has secured consistent profits through other deals, including debt financing for companies like Revolut, as well as building a substantial public stock portfolio in companies like Amazon and Alibaba.
“The general theme is to maximize liquidity,” said an insider familiar with the company. “Decisions are heavily influenced by how much cash they believed they could distribute at this stage.”
Rocket’s increased dividend comes after Samwer gained greater control through the company’s acquisition of activist investor Elliott Management’s approximately 20% stake in a deal that concluded last year.
Samwer’s vehicle, Global Founders, now holds approximately 83% ownership of Rocket Internet.
Samwer has not responded to requests for comment.
Rocket Internet, founded about 16 years ago by Samwer and his brothers Marc and Alexander, gained a reputation as one of Europe’s most active investors in technology companies.
The firm generated significant profits for its owners by providing early support to start-ups such as HelloFresh and Delivery Hero, which later went public with valuations in the billions of euros.
After its share price halved over a six-year period as a publicly traded company, Rocket made plans to go private in 2020. The delisting process was contentious, as Rocket offered to purchase shares at a price below their market value, and Elliott amassed a blocking stake.
In the end, Rocket successfully delisted but had to pay nearly double its initial offer and include a special deal for Elliott.
According to the 2022 annual report seen by the Financial Times, the company generated €18 million in revenue from office rentals and consulting services provided to affiliated companies. Other operating income increased to €468 million, partly due to the sale of some listed securities.
The report also revealed that Rocket Internet had to write down the value of its financial assets and marketable securities by over €452 million, indicating the challenges faced by technology investors. However, the company still retains approximately €211 million in cash.
Samwer controls Rocket Internet through a network of companies. The owner of Rocket Internet, Global Founders GmbH, is owned by another entity named Zerena, which is jointly owned by the Oliver Samwer Family Foundation and the Aramid Foundation, as per German filings. Marc Samwer is listed as a member of Zerena’s management, according to a filing from 2021.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
