Uber is looking to acquire food delivery service Delivery Hero. The Berlin-based company, which owns Foodpanda, confirmed over the weekend that it had received a takeover offer from the ride-hailing giant. Apparently, the offer would value the company at over EUR10 billion (~RM46 billion).
That said, while Delivery Hero did not disclose whether it would accept this bid, a report by the Financial Times claimed that the company had rejected Uber’s offers. Yes, offers. As per the report, Uber CEO Dara Khosrowshahi initially flew over to Oslo to meet Delivery Hero’s supervisory board chair Kristin Skogen Lund. During this meeting, Khosrowshahi floated an offer valuing the company at EUR33 (~RM152) per share.
The US company also reportedly approached one of Delivery Hero’s major shareholders with a EUR38 (~RM175) per share offer. However, this offer was rebuffed. Apparently, Uber’s board held a meeting recently to discuss whether it should raise its bid for the food delivery platform.
As it stands, Uber owns 19.5% of Delivery Hero, with a further 5.6% in derivatives. Additionally, the company is allegedly looking to acquire derivatives that would take its indirect ownership of the German firm above 30%.
Meanwhile, Delivery Hero is reportedly seeking a price above EUR40 (~RM184) per share. The company board is also considering either a full sale or a series of deals to spin off its Middle East and Korea divisions. Furthermore, the Financial Times report claimed that DoorDash is also considering acquiring the company and has reached out to shareholders. However, it has yet to purchase any shares.
For the time being, it is uncertain what price Uber and Delivery Hero will ultimately decide on. Moreover, either party may still decide against the acquisition. In any case, should the companies come to an agreement, Uber would indirectly gain access to Delivery Hero’s businesses, including Foodpanda.
(Source: Financial Times, Reuters)
