Rocket Internet seeks shareholders' permission to issue bond

Reuters News
Posted: Jun 23, 2015 6:34 AM

FRANKFURT (Reuters) - Germany's Rocket Internet plans to seek shareholders' permission to issue a convertible bond of up to 2 billion euros ($2.25 billion) by June 2020 at its shareholder meeting on Tuesday to increase its financial flexibility for its global investment spree.

Europe's largest Internet company with stakes in more than 100 start-ups aims to build an e-commerce operating empire, for which it constantly seeks fresh funds.

Just four months after it raised 1.4 billion euros in its stock flotation in October, the Berlin-based group went to investors with a capital hike of 588 million euros.

Having the option of issuing the bond would help Rocket to "be prepared in fast moving markets", a company spokesman said on Tuesday.

Rocket shares fell 1.7 percent to 38.06 euros in early Tuesday trade, underperforming the broader market.

The volatile stock currently trades around 10 percent off the level at which its initial public offering was priced.

(Reporting by Kirsti Knolle; Editing by Georgina Prodhan)