Continue reading this on our app for a better experience

Open in App
Home News Company in the news

Delivery Hero says talks to sell Foodpanda have failed

Bloomberg
Bloomberg • 2 min read
Delivery Hero says talks to sell Foodpanda have failed
Business in Asia, Delivery Hero’s largest market, has stagnated since pandemic-era lockdowns eased. Photo: Bloomberg
Font Resizer
Share to Whatsapp
Share to Facebook
Share to LinkedIn
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

German food delivery group Delivery Hero SE said negotiations to sell part of its Foodpanda business in some markets in Southeast Asia have failed after it couldn’t reach a final agreement on deal terms.

The company had confirmed on Feb 2 that talks to sell the business in Singapore, Malaysia, the Philippines, Thailand and other countries were continuing. Those discussions have ended, Delivery Hero said Wednesday in a statement.

Business in Asia, Delivery Hero’s largest market, has stagnated since pandemic-era lockdowns eased. In September, the company said it was in talks to sell the Foodpanda brand in some countries in Asia without naming potential buyers. 

The shares fell 7% to €21.07 ($30.66) at 10.09 am in Frankfurt trading after earlier dropping as much as 10% on Thursday. The stock has declined 14% this year. 

Delivery Hero’s Chief Executive Officer Niklas Oestberg said in a press release that the decision to terminate negotiations was taken with “careful consideration” after the Asian business showed strength in the final quarters of last year.

Speaking to Bloomberg earlier this month, Oestberg said that while Asia was lagging about a year behind other regions in rebounding from a post-Covid slump, he sees the growth pattern normalizing to pre-pandemic levels.

See also: MAS and CAD probing Seatrium under SFA over Operation Car Wash

“Now we can run it without it being a heavy drag down on our profitability,” Oestberg said.


Delivery Hero’s termination of talks with Grab to sell the unprofitable assets of Foodpanda’s Southeast Asia businesses — likely due to valuations — raises concerns about reaching its €725-€775 million 2024 Ebitda target. Management stated earlier there’s no urgency to sell, with sufficient liquidity in place (about €1.55 billion in cash at the end of January) even after repaying almost €4 billion in convertible bonds, and with the APAC business expected to have reached Ebitda breakeven in 4Q23.


Tatiana Lisitsina, Bloomberg Intelligence retail analyst

Southeast Asia’s biggest ride hailing companies, Grab Holdings Ltd. and GoTo Group, restarted talks about potential combinations of their businesses, people familiar with the matter said earlier this month. 

Around the same time, a report from Malaysian newspaper New Straits Times said that Delivery Hero’s talks to sell part of the Foodpanda business to Grab had collapsed, citing people familiar with the matter. Delivery Hero at the time denied that talks to offload the operations had failed. 

×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
© 2024 The Edge Publishing Pte Ltd. All rights reserved.