9th Aug 2021 13:35
(Alliance News) - Delivery Hero SE on Monday confirmed it has bought a 5.1% stake in rival Deliveroo PLC.
"Delivery Hero is always looking for new investment opportunities. We strongly believe in the future potential of the delivery industry as a whole, and therefore decided to purchase shares in one of the companies that is at its forefront," Delivery Hero said in an emailed comment.
Berlin-based Delivery Hero, like London-based Deliveroo, uses a network of restaurants and gig-economy couriers to provide food delivery.
Shares in Deliveroo, which had earlier on Monday disclosed the investment in a stock market filing, were up 7.4% in London on Monday afternoon to 349.15 pence. It has a market capitalisation of about GBP6.01 billion.
Deliveroo declined to comment on Delivery Hero's stake.
Delivery Hero was down 1.9% to EUR128.70 in Frankfurt. It has a market cap of EUR32.09 billion, about GBP27.21 billion, making it four times larger than Deliveroo.
"This will fuel speculation of further consolidation to come in the sector," Winterflood Securities analysts said in a note.
Delivery Hero was founded in 2011 operates in 46 countries across Europe, the Middle East, Asia and Latin America. It formerly operated in the UK under the Hungryhouse brand, before selling that to Just Eat Takeaway.com NV in 2018.
Deliveroo, which also counts Amazon.com Inc among its investors, was founded in 2013 and is available in 12 countries in Europe, the Middle East and Asia Pacific, although it is in the process of shutting down its Spanish business.
Under London Stock Exchange rules, companies have to disclose all investors with a stake of 5.0% or more. Deliveroo's filing did not say what Delivery Hero's previous stake was before crossing the threshold on Friday last week.
By Ivan Edwards; [email protected]
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Related Shares:
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