Rocket Internet Sells Foodpanda to Delivery Hero for ‘Nothing’

Rocket Internet Sells Foodpanda to Delivery Hero for ‘Nothing’

Delivery Hero Holding GmbH said it has acquired of Foodpanda from Rocket Internet, the parent company of Jumia Nigeria.

In an email statement Rocket Internet said it did not receive cash compensation for the sale but in exchange for all its shares in foodpanda, Rocket Internet SE received newly issued shares in Delivery Hero increasing its stake in Delivery Hero to c. 37.7% (on a fully diluted basis).

The transaction strengthens Delivery Hero’s global leadership position in online food ordering and delivery, with the combined group processing over 20 million orders per month across 47 countries. Foodpanda operates in total in 22 countries with market leading positions in 17 of them. The acquisition of foodpanda will enable Delivery Hero to consolidate its market leadership position in the Middle East and adds 20 new countries in Eastern Europe, MENA and Asia to Delivery Hero’s platform increasing the size of Delivery Hero’s total addressable market. Furthermore, the combination of the two key companies leads to a significant reduction of complexity at group level for Rocket Internet.

“The combination of foodpanda and Delivery Hero, one of our most important companies, further consolidates key markets resulting in significantly improved market positions. Delivery Hero is also acquiring new markets with leading market positions further broadening its geographic footprint”, said Oliver Samwer, Rocket Internet’s CEO. “In addition, the transaction leads to reduced complexity at group level for Rocket Internet.”

“Foodpanda has built a fantastic position and service offering in some of the largest food delivery markets globally. We look forward to working with the team to continue creating unparalleled takeaway experiences for our customers around the world”, said Niklas Östberg, Delivery Hero’s CEO.

“I am delighted to join forces with Delivery Hero and be part of a global platform that will help us grow and with which we share a common vision”, said Ralf Wenzel, Foodpanda’s CEO.

Rocket Internet said the transaction is subject to customary closing conditions and is expected to close prior to December 31, 2016.

It would be recalled that Rocket Internet had notified its intention of getting out food delivery business. The sale of its stake in Foodpanda to Delivery Hero means the company will only watch and see its shareholding grow or otherwise.

It is not clear if Rocket Internet will be doing the same to Jumia as the company only has 28.4% stake in the company based on its Last Portfolio Value (LPV), released on the 15th of November.