In a recent move, Delivery Hero SE, a Berlin-based food delivery platform, raised €1.25B by issuing 9.44 million new shares to institutional investors at €132/share, increasing its current share capital by around 4.7 per cent.
The placement price of €132/share represented a 4.6% discount to the stock’s closing price of €138.35 on January 6, reports Reuter. The company is planning to use the proceeds to take advantage of investment opportunities and general corporate purposes.
Reached all-time high
The company’s shares, which were promoted to Germany’s blue-chip stock index in August reached an all-time high on Tuesday, as the demand for home deliveries of food and other essential items continues due to the COVID-19 pandemic. Notably, the company’s shares are listed on the Frankfurt Stock Exchange and included in the DAX (Deutscher Aktienindex) index as well.
Received approval for €3.6B deal
Back in December 2019, the food delivery company had announced the acquisition of South Korea’s largest food delivery platform Woowa Brothers. Exactly after a year, the German company announced that it had received regulatory approval of its $4B (approx €3.6B) takeover deal. Notably, the Berlin food delivery company expects to receive the final written approval and closing to occur in the first quarter of 2021.
Niklas Östberg, CEO and Co-Founder of Delivery Hero, says: “The approval of our partnership with Woowa is great news for both our companies and the broader delivery industry. We are deeply saddened by the required condition to divest Delivery Hero’s subsidiary Delivery Hero Korea in South Korea.”
The Korea Fair Trade Commission (KFTC) issued a statement saying that it will approve Delivery Hero SE’s previously announced joint venture with Woowa under the condition of the divestiture of Delivery Hero’s 100 per cent South-Korean subsidiary Delivery Hero Korea LLC. (“Yogiyo”) within six months from the date of which Delivery Hero will receive the KFTC’s final written decision.
Operates in 21 countries
Founded in Berlin in 2011, Delivery Hero is a worldwide network of online food ordering sites, operating in 21 countries and with over 73,000 restaurant partners. Additionally, the company is also planning to set its foot in the e-commerce sector, aiming to bring groceries and household goods to customers in under 20 minutes.
To date, the company has received $6.6B (approx €5.3B) funding from investors including Insight Venture Partners, Luxor Capital Group, Kite Ventures, Team Europe, ru-Net, Tengelmann Ventures, Point Nine Capital, Vostok Nafta, and Phenomen Ventures.