Delivery Hero Ends Potential Sale Of Foodpanda - Announced New Liquidy Strategy
In 2023, Delivery Hero, which is the German-based parent company of Foodpanda operating in the Southeast Asian region and Cambodia, confirmed it was looking to potentially sell part of its Asian business. The company has announced it had ended any potential sales talks and confirmed a new liquidity strategy in Q1 2024.
Delivery Hero SE is one of the world’s leading local delivery platforms, and a statement from the firm confirmed that it had terminated discussions with the main negotiating counterpart “regarding a potential sale of its foodpanda business in selected Southeast Asian markets covering Singapore, Malaysia, the Philippines, Thailand, Cambodia, Myanmar and Laos.”
In September 2023, the company also embarked on a wave of layoffs in an effort to “streamline operations” and become “more agile.” The firm said it withdrew from negotiations after it felt it was no longer the case that they were in alignment on the fundamental terms with the potential buyer.
Delivery Hero's CEO suggested that its business in the region remains strongly positioned to drive profitable growth.
Niklas Östberg, CEO and Co-Founder of Delivery Hero, said; "The strength of our APAC business has become evident during the last quarters as the region reached an inflection point in 2023. We believe the region remains strongly positioned to drive profitable growth at scale. The decision to terminate negotiations after months of discussions was taken after careful consideration."
They also added that they would remain open to M&A (Mergers & Acquisitions) and will "continue to assess potential strategic alternatives".
New Liquidy In 2024 - Delivery Hero
Delivery Hero's announcement that they had secured new liquidity was met with enthusiasm on the stock exchange and saw an initial rise in shares. The company said it was operating on a break-even level in the SEA region, based on its Q4 2023 trading update. It also published its Investor Presentation on March 4 2024.
Bernstein analyst William Woods said the refinancing was "overwhelmingly positive," and that the strategic decision calmed fears about the company's ability to meet its financial obligations but also demonstrated a proactive approach to its future financial management.
The new liquidy should reduce the risk of financial strain and ensure operational continuity but analysts confirmed this is still in the backdrop of a volatile food delivery sector. In Cambodia, there are several similar services such as Grab, Nham24, E-GetS, Muuve, and many more local and regionally developed apps.