Delivery Hero SE confirmed that it’s in talks to sell part of its business in Southeast Asia, where growth has stagnated since Covid-19 lockdowns eased.
(Bloomberg) — Delivery Hero SE confirmed that it’s in talks to sell part of its business in Southeast Asia, where growth has stagnated since Covid-19 lockdowns eased.
The company is in negotiations to sell the Foodpanda brand in Singapore, Malaysia, Philippines, Thailand, Cambodia, Myanmar and Laos, Berlin-based Delivery Hero said in a statement on Wednesday. The negotiations are at an early stage and there’s no certainty that they’ll lead to a deal, it said. The statement was in response to an earlier report from German magazine WirtschaftsWoche.
While the Asia business is Delivery Hero’s largest revenue driver, it’s struggling to maintain momentum. Chief Executive Officer Niklas Oestberg said last month that the company had “pulled back a little bit” in the region following years of heavy investments in order to focus on profitability. “But it also means that some customers are probably a little less excited about what we can offer today,” he said at the time.
Delivery Hero shares rose 8% to €32.19 at 5:18 p.m. in Frankfurt trading after earlier touching €33.82, the biggest intraday gain since November. The stock has declined 28% this year.
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