After its debut through an initial public offering, IPO, Naspers said it has initiated a transaction to obtain 22,359,857 shares of Delivery Hero stock.
Naspers if buying the stake from Rocket Internet for €660m (US$775m) at a price of €29.50 per share. The purchase increases Naspers’ stake to 23.6% and positions the company as the largest shareholder in Delivery Hero.
Naspers initially invested in Delivery Hero in May of this year. Since then, the company executed a successful IPO in June and delivered strong half-year results as a public company on September 26, 2017.
“Delivery Hero is already the leading online food ordering and delivery marketplace in most of the countries in which it operates and our increased investment demonstrates our confidence in the long-term prospects for the company. The food delivery sector is still underpenetrated and growing rapidly across the world. Many markets have experienced significant traction already, but we believe the potential is far greater in high-growth markets than that observed in the West,” Naspers CEO, Bob van Dijk said.
“We are delighted that Naspers is increasing its stake in Delivery Hero. We share the same long-term belief in our business and we will continue to benefit from their experience to grow our business globally,” said Niklas Östberg, CEO, Delivery Hero.
Growing its position in online food ordering and delivery is consistent with Naspers’ strategy to invest in platforms with global potential that offer online marketplace services in high-growth markets. Delivery Hero has outstanding growth prospects and has high levels of consumer engagement in the markets where it operates. In addition to the investment in Delivery Hero, Naspers recently led an $80M Series E investment in Swiggy, a leading food ordering and delivery platform in India. Through majority-owned Movile, Naspers has a leading food delivery business in iFood, operating in Brazil and Mexico (under the brand SinDelantal), and Naspers also operates Mr. D Food, a food delivery business in South Africa.
The company said the transaction is subject to regulatory approval, will be funded from existing resources, and is expected to close in the first quarter of 2018.