Companies in ride-hailing and food delivery have taken a closer look at Delivery Hero as investors explore strategic options for the food delivery group. Sources familiar with the situation told the Financial Times that both Uber and DoorDash have held talks with Delivery Hero investors regarding a possible buyout.
The conversations come after a separate Bloomberg report that said Uber had been considering a full takeover of Delivery Hero. According to people cited by the FT, several investors are pressing for a price above EUR 40 per share as they weigh potential exit routes.
Delivery Hero's board is reported to be deliberating between a single comprehensive sale and a strategy that would separate some regional units through multiple transactions. One option under consideration is carving out the group's Middle East operations as well as its South Korea business.
DoorDash's interest, as described in the report, is concentrated on Delivery Hero's Middle East assets, specifically the operations that include Talabat and HungerStation. The report indicated DoorDash sees strategic value in those regional brands.
Uber's position in the company has notably strengthened. Last week the company confirmed it is now Delivery Hero's largest shareholder after more than doubling its previous holding. Delivery Hero said Uber's stake stands at 19.5% of issued capital, up from roughly 7%.
Internal governance shifts have also been signaled. Delivery Hero's CEO, Niklas Oestberg, announced he would resign following demands from several large shareholders for a clearer strategic direction for the company.
Market reaction has been pronounced. Shares of Delivery Hero have climbed by nearly 110% in Frankfurt trading over the past six months, a run that places the firm's market valuation at about EUR 10.2 billion.
Additional context provided in original reporting:
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Summary of the factual developments
- Uber and DoorDash have held talks with Delivery Hero investors about a potential buyout, according to the Financial Times.
- Investors cited in the report are seeking a price in excess of EUR 40 per share.
- Delivery Hero's board is considering either a full sale or separate deals to spin off its Middle East and South Korea businesses.
- DoorDash is primarily interested in the Middle East business, including Talabat and HungerStation.
- Uber has increased its stake to 19.5% of issued capital, making it the largest shareholder, up from about 7%.
- CEO Niklas Oestberg has said he will resign after calls from several large shareholders for a strategic view.
- Delivery Hero shares have climbed nearly 110% in Frankfurt over the past six months, valuing the company at roughly EUR 10.2 billion.