Delivery Hero has halted discussions regarding the potential sale of its Foodpanda business in certain Southeast Asian markets.
The German-based online food ordering platform was in talks to sell off its operations in Cambodia, Laos, Malaysia, Myanmar, the Philippines, Singapore, and Thailand.
Delivery Hero co-founder and CEO Niklas Östberg said, “The strength of our APAC [Asia Pacific] business has become evident during the last quarters as the region reached an inflection point in 2023.
“We believe the region remains strongly positioned to drive profitable growth at scale. The decision to terminate negotiations after months of discussions was taken after careful consideration.”
On February 2nd, 2024, Delivery Hero reiterated its ongoing discussions and conveyed optimism about reaching favorable terms with the primary negotiating party.
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The company was confident that it had reached consensus with the prospective buyer on the essential terms of the sale.
However, circumstances have shifted, prompting Delivery Hero to retract from the negotiations.
Delivery Hero said in a statement, “As always, the company will remain open to mergers and acquisitions and will continue to assess potential strategic alternatives.
“However, Delivery Hero will only proceed with negotiations where it can create value for shareholders with high certainty of closing.
“Delivery Hero continues to exercise a disciplined investment policy aimed at maximising profitable growth and free cash flow generation in its operations.”
In late January 2024, Delivery Hero offered 68 million Class A shares in Deliveroo to institutional investors for settlement on February 1st.
The shares translate to an approximately 4.5% stake and mark Delivery Hero’s exit from the London-based firm.
The German company placed the Deliveroo shares for £1.13 ($1.43) per share with institutional investors in an accelerated bookbuilding process.
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