Company threatened relegation in MDax
Bafin examines Delivery Hero’s price drop
02/11/2022, 8:16 p.m
The drop in Delivery Hero shares will be a case for the Bafin. According to the supervisory authority, the check routinely includes “possible breaches of transparency obligations”. Meanwhile, the price continues to plummet – the company is threatened with losing its Dax membership.
The financial supervisory authority Bafin is reviewing the fall in the Delivery Hero share price. A spokeswoman for the Bafin told the “Wirtschaftswoche”. Delivery Hero’s share price fell by more than 30 percent after the publication of the annual figures on Thursday. The price continued to fall this Friday.
“We routinely look at trading activities, which also includes possible violations of transparency obligations,” said the Bafin spokeswoman. Delivery Hero did not want to comment on the request of the “Wirtschaftswoche”.
The Berlin ordering platform had published its figures for 2021 and reported a negative profit margin on the value of goods. The minus 2.2 percent was worse than forecast; in addition, the outlook for the profit margin for the current year was negative.
Apparently, more and more investors are losing confidence in the prospects of the food delivery service. With a minus of 11.8 percent, it went down to 41 euros on Friday. In two trading days, the stocks have lost almost 39 percent, accelerating the downward slide that has been ongoing since mid-November.
After the recent sell-off, Delivery Hero is only worth a little over 10 billion euros on the stock exchange. If you look at the freely tradable shares, the value of the free float, which is relevant for Dax membership, is less than 7 billion euros. The company is threatened with relegation to the MDax in March. In this way, Daimler Truck could be promoted to the leading index.
When Delivery Hero rose to the first stock exchange league in summer 2020, when the company replaced payment processor Wirecard, many experts criticized the move. Because the supplier group had never made a profit in its ongoing business since it was founded in 2011. Based on the current rules of Deutsche Börse, Delivery Hero would no longer be able to be included in the Dax. For this, a candidate must have achieved earnings before interest, taxes, depreciation and amortization for two years in a row.