Delivery Hero confirms talks on partial sale of Asian business

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Delivery Hero confirmed talks on a partial sale of its Asia business on Wednesday, adding that the deal's value is still under negotiation.

confirmed talks on a partial sale of its Asia business on Wednesday, adding that the deal's value is still under negotiation.

The Wirtschaftswoche business magazine first reported the news earlier in the day, saying Singapore's GrabThe Berlin-based company plans to sell its activities under the foodpanda brand in Singapore, Cambodia, Laos, Malaysia, Myanmar, the Philippines and Thailand, it said in a statement. Investors in the online takeaway food company welcomed the report, lifting its shares as much as 13.5%.Delivery Hero has been focusing on reaching profitability while maintaining growth as investor confidence in the company started to wane after a pandemic-driven boost.

The group has said that it reached an adjusted profit before interest, tax, depreciation and amortisation in the first six months of the year, although it did not quantify it, after a loss of 323 million euros in the same period a year earlier.said that Asia was the segment where the company saw most opportunity to invest.in the quarter that ended June 30 and expects to break even on an adjusted core earnings basis in the current quarter.

Writing by Rachel More, additional reporting by Andrey Sychev; editing by Matthias Williams, Kirsten Donovan

 

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