Wednesday, January 06, 2021
Capital increase for acquisitions
Delivery Hero fills the war chest
The DAX company collects more than a billion euros from investors overnight. This is to take advantage of any buying opportunities that arise. Only recently had the Berliners struck South Korea with no German business.
The food delivery service Delivery Hero wants to collect more than 1.2 billion euros from large investors overnight to finance further growth plans. The Berlin company is offering 9.44 million new shares, as Delivery Hero announced after the market closed. That is just under five percent of the share capital. The new shares will only be offered to institutional investors. The management around CEO Niklas Östberg wants to use the fresh money for "possibly attractive investment opportunities"
The new papers are likely to be placed at EUR 132 each, 4.6 percent less than the closing price. One of the accompanying banks informed the interested party that offers under 132 euros would probably not be considered. Delivery Hero would generate almost 1.25 billion euros. The share that was moved up in the leading index Dax in summer 2020 had only reached an all-time high the day before.
It was only shortly before the turn of the year that Delivery Hero received the green light from the South Korean antitrust authorities to take over the local delivery service market leader Woowa. For the € 3.6 billion acquisition, the company had already collected € 2.3 billion a year ago through new shares and convertible bonds. To a large extent, however, the Woowa owners are paid in Delivery Hero shares.
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