The Korea Economic Daily reported that Germany’s Delivery Hero is looking at a sale of Woowa Brothers Corporation, the operator of Korea’s biggest food delivery platform, Baedal Minjok, for around $5.4 billion, or a whopping eight trillion won, a valuation seen as high-stakes for a sector that has been overtaken by several others. Here’s the scoop.
Delivery Hero is a publicly-traded, Berlin-based multinational technology company, operating the leading local delivery platform globally, connecting consumers with millions of restaurants and shops across over 60 countries to deliver not just food, but also groceries and household items.
But, why are Naver – the preferred app for transportation, search, and more in South Korea – DoorDash, and Uber on the line? Ridesharing Forum explores.
Apparently, Delivery Hero has officially begun the sale of Woowa Brothers, something that has been going on for years. Now, it has come into fruition.
Yesterday, according to investment bankers, Delivery Hero distributed a teaser letter, thank you to JP Morgan, the sell-side advisor for Woowa Brothers, to big domestic and overseas strategic investors and private equity fund managers.
That means that the operations of not only Naver, Uber, and DoorDash, but also Alibaba, will be affected. They also received the letter. DoorDash is the number one food delivery app in the USA, while Uber is the number one ridesharing app there.
Delivery Hero is reportedly expecting a corporate value amounting to the price stated in the lead, which is roughly 12 times the average operating profit for the previous two years. It was in 2019 when Delivery Hero acquired the Woowa Brothers operator for around $4 billion.
Industry and financial experts stated that this move is about Delivery Hero re-organizing its assets to enhance its financial structure and secure liquidity. As of the end of last year, its liabilities ballooned to $6.9 billion, roughly, so it is making the right choice, somehow. Delivery Hero also sold its foodpanda Taiwan to Singapore-headquartered Grab.
The bad news is, it is uncertain whether the transaction will be completed in full. The media are abuzz with the story, but the businesspeople have not yet made a decision. For more ridesharing and food delivery news, plus more, keep browsing this Ridesharing Forum website.