The U.S. ride-hailing company proposed €33 a share for the German food delivery firm, which said it remains focused on its strategic review
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Delivery Hero confirmed on Saturday that Uber $UBER Technologies had submitted an indicative proposal of €33 per share — equivalent to roughly €10 billion, or $11.6 billion — in respect of a potential takeover offer to all of the Berlin-based company's shareholders.
Delivery Hero stock opened more than 10% higher on Monday following the announcement, according to CNBC. The stock climbed as high as €37.16 in Frankfurt trading, about 13% above Uber's indicative offer price, according to Bloomberg Law. Uber stock fell 2.4% following Friday's initial reports of the talks.
Uber had been building its position in Delivery Hero in the weeks before the bid, according to The Wall Street Journal. According to CNBC, Delivery Hero disclosed that Uber's stake had grown from around 7% to approximately 19.5% of issued capital, a position that elevated the U.S. company to top shareholder status.
Uber's board convened on Saturday to discuss an improved bid after a €38 per share offer was reportedly rejected by one of Delivery Hero's major shareholders, according to CNBC, citing the Financial Times. Because the €33 indicative price matched Delivery Hero's Thursday close — before word of any discussions became public — Bloomberg Law observed that the absence of any premium could invite competing suitors to enter the fray.
According to The Wall Street Journal, the bid arrives at a turbulent moment for Delivery Hero, which has navigated a co-founder and CEO exit, an overhaul of its shareholder base, and a fundamental rethinking of its business direction.
In a statement, Delivery Hero indicated that its attention is directed toward completing its ongoing strategic review, with the company pledging to keep stakeholders informed as circumstances develop. A successful acquisition would extend a broader pattern of dealmaking reshaping the food delivery industry, which has recently absorbed transactions including DoorDash's purchase of Deliveroo and Prosus's takeover of Just Eat, according to CNBC.
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