Rocket Internet to sell €150 million shares in HelloFresh

Rocket Internet to sell €150 million shares in HelloFresh

Rocket Internet, the parent company of Jumia said it is selling off about EUR 150 million worth of its shares in HelloFresh.

HelloFresh is its grocery and green food delivery eCommerce site that was listed last year.

Apparently, to begin the further cash out process after the company’s IPO in 2017, Rocket Internet said it has placed a number of HelloFresh SE shares, which will result in gross proceeds of at least EUR 150 million.

Rocket Internet said the shares will be offered to institutional investors as part of an accelerated placement.

The placement starts immediately and is expected to be completed today.

Because HelloFresh was taken on IPO last year, the company disclosed that the Joint Bookrunners will waive the restriction of access agreed with Rocket Internet in connection with the initial public offering of HelloFresh in October 2017, to the extent necessary to complete the placement of the shares. If the IPO lock-up had not been waived, it would expire on May 1, 2018.

Following completion of the placing, Rockef Internet’s interest in HelloFresh will be subject to an additional 90-day extended lock-up commitment, ie until 30 July 2018 .

After the sell-off, Rocket Internet said it will offer the option to other pre-IPO shareholders of HelloFresh, and to subscribe for HelloFresh shares (pro-rata in terms of their pre-IPO interest relative to the total number of shares sold in the placing) to Rocket Internet at the Placing Price less costs and expenses (proportionately) for sale.

Rocket Internet said it will only grant this option if the relevant shareholder enters into a lock-up agreement with the Joint Bookrunners under substantially the same terms as the Extended Lock-Up.

“This option will be granted as soon as possible following the pricing of the Share Placement and will expire on the third Business Day following that day,” the company said.