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Delivery Hero in Talks for Partial Sale of Foodpanda, with Grab a Potential Buyer
Updated: Jan 9
Delivery Hero, the German online takeaway food company, is reportedly in talks for a partial sale of its Asia business.
According to a report by Wirtschaftswoche business magazine, Singapore's Grab is a potential buyer and could pay over 1 billion euros (S$1.46 billion) for the Foodpanda brand in several Southeast Asian countries.
Delivery Hero plans to sell its operations under the Foodpanda brand in Singapore, Cambodia, Laos, Malaysia, Myanmar, the Philippines and Thailand. The deal's value is still under negotiation, according to a statement from the company.
Investors reacted positively to the news, with Delivery Hero's shares rising as much as 13.5% on Wednesday. However, Grab has not yet commented on the potential acquisition.
Delivery Hero has been focusing on achieving profitability while maintaining growth. The company reported an adjusted profit before interest, tax, depreciation and amortisation (EBITDA) in the first half of the year, after a loss of 323 million euros in the same period last year.
Although Delivery Hero's Asia business is its largest revenue driver, the company has faced challenges in maintaining momentum. CEO Niklas Oestberg stated that they have scaled back their investments in the region to focus on profitability, which may have affected customer excitement about their offerings.
Delivery Hero's shares rose 7% in Frankfurt trading following the news, reaching a high of €33.82. However, the stock has declined by 28% this year.
Grab, a Singaporean internet firm, has seen strong growth in its food delivery and ride-hailing businesses. In the quarter ending June 30, Grab reported US$567 million (S$774 million) in revenue and expects to break even on an adjusted core earnings basis in the current quarter.
Delivery Hero is in talks for a partial sale of its Asia business.
Singapore's Grab is a potential buyer and could pay over 1 billion euros for the Foodpanda brand in Southeast Asian countries.
Delivery Hero plans to sell its operations in Singapore, Cambodia, Laos, Malaysia, Myanmar, the Philippines and Thailand.
Investors reacted positively to the news, with Delivery Hero's shares rising as much as 13.5%.
Grab has not yet commented on the potential acquisition.
Source: The Straitstimes