BUZZ-Delivery Hero slumps as Taiwan halts Foodpanda deal
Shares of Delivery Hero (DHER.DE) dropped nearly 14% in early trading after Taiwan's Fair Trade Commission blocked its sale of Foodpanda to Uber, citing concerns over reduced competition. Uber had planned to acquire Foodpanda in Taiwan and invest $300 million in DHER shares. The decision is viewed negatively as DHER intended to use the proceeds for bond buybacks. Uber may appeal or terminate the deal, according to DHER's statement. The stock is currently at the bottom of Germany's mid-cap index.
Shares in German online takeaway food company Deliver Hero (DHER.DE) fall nearly 14% in early Frankfurt trade after Taiwan Fair Trade Commission (TFTC) blocked DHER’s sale of Foodpanda business in the country to Uber (UBER.N) , arguing it would decrease competition
Uber announced earlier this year that it would take over Foodpanda in Taiwan and purchase $300 million in newly issued shares of DHER at 33 euros each
TFTC’s decision “should be seen very negative, as DHER intended to use the net proceeds from the transaction to buy back convertible bonds and enhance its capital structure,” a local trader says
Uber may appeal the decision by TFTC or terminate the transaction, DHER said in a statement on Wednesday
The stock hits the bottom of Germany’s mid-cap index (.MDAXI) (1 euro = $1.0409)
