Delivery Hero Affirms Discussions Regarding Partial Sale of Asian Business.
Delivery Hero has officially confirmed ongoing discussions regarding the partial sale of its Asian business, although the precise deal’s value remains subject to negotiation.
The initial report by the Wirtschaftswoche business magazine suggested that Singapore’s Grab might potentially acquire the unit for slightly more than €1 billion ($1.07 billion).
As part of this move, the Berlin-based company intends to divest its operations operating under the Foodpanda brand across several countries, including Singapore, Cambodia, Laos, Malaysia, Myanmar, the Philippines, and Thailand, as stated in an official announcement.
Investors in the online food delivery company responded positively to this news, causing a surge in its shares, which rose by as much as 13.5%.
At the time of the report, Grab had not responded immediately to the news when contacted via email.
Delivery Hero has been actively working on achieving profitability while sustaining growth as investor confidence began to wane following a pandemic-induced surge in business.
The group has reported achieving adjusted profit before interest, tax, depreciation, and amortization (EBITDA) in the first half of the year, although it did not disclose specific figures. This comes after a €323 million loss in the same period the previous year.
In recent remarks, CEO Niklas Oestberg highlighted Asia as the segment with the most promising investment potential for the company. Singapore’s internet firm, Grab, reported $567 million (€532.2 million) in revenue for the quarter ending on June 30 and anticipates reaching adjusted core earnings break-even in the current quarter.
Grab primarily generates revenue from its food delivery business and has experienced substantial growth in its ride-sharing sector.
Earlier this year, Delivery Hero announced plans to issue a new seven-year convertible bond, aiming to raise €1 billion by offering investors significantly higher interest payments than in the past.