According to a report in the Wirtschaftswoche business magazine on Wednesday (Sept 20), Delivery Hero is actively engaged in advanced discussions regarding a partial sale of its Asia business. The report suggests that Singapore’s Grab may be willing to pay slightly over 1 billion euros (US$1.07 billion) for this venture.
Sources familiar with the matter, as cited by Wirtschaftswoche, indicate that the Berlin-based company is contemplating the sale of its operations under the Foodpanda brand in Southeast Asia, according to The Star.
The company later confirmed that this is true via a statement issued yesterday, stating that there are negotiations regarding the potential sale of its Foodpanda business in selected Southeast Asian markets covering Singapore, Malaysia, the Philippines, Thailand, Cambodia, Myanmar, and Laos.
The negotiations are in their preliminary stages and it is uncertain and subject to various open points whether this will lead to a definitive agreement. The purchase consideration for the entire transaction is still under negotiation.
Delivery Hero’s statement.
Delivery Hero’s recent strategic focus has been on achieving profitability while sustaining growth, a shift in response to diminishing investor confidence in the company following a pandemic-induced surge in demand.
The company disclosed that it achieved adjusted profit before interest, tax, depreciation, and amortisation (EBITDA) during the first half of this year, although it did not specify the amount, marking a turnaround from a EUR323 million (approx. RM1.61 billion) loss in the same period the previous year.
In a statement made last month, Chief Executive Niklas Oestberg identified Asia as the primary region where the company perceives significant investment opportunities.
Grab derives the majority of its revenue from its food delivery operations and has experienced robust expansion in its ride-sharing segment recently.
