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BREAKING NEWS

BREAKING NEWS

Delivery Hero sells German food delivery operations to Takeaway.com

Delivery Hero sells German food delivery operations to Takeaway.com
The Delivery Hero headquarters is pictured in Berlin, Germany, June 2, 2017. The Berlin-based company Delivery Hero, one of Europe's largest internet start-ups. Picture taken June 2, 2017. REUTERS/Fabrizio Bensch -
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FABRIZIO BENSCH(Reuters)
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(Reuters) - Delivery Hero SE <DHER.DE>, the world's biggest online food delivery firm, said it is selling its German food delivery operations to Netherlands-based Takeaway.com NV <TKWY.AS> for 930 million euros (841.53 million pounds).

The deal value includes 508 million euros in cash and 9.5 million shares in Takeaway.com worth 422 million euros, the company said on Thursday.

Takeaway, by far the largest food ordering service in the Netherlands, has been locked in an expensive fight for dominance in the German market with Delivery Hero.

Delivery Hero will sell its German food delivery businesses Lieferheld, Pizza.de and foodora in return for a cash and equity stake in the Dutch company, the statement added.

Once completed, the equity portion of the deal would represent a stake of about 18 percent of Takeaway's total shares, Delivery Hero said.

Takeaway has secured committed debt financing of 680 million euros for the cash portion of the transaction, according to the statement.

The German company, which operates in more than 40 countries, said it is expecting revenue between 1.08 billion euros and 1.15 billion euros for 2019.

Takeaway said in October its third-quarter orders grew by 40 percent in the German market.

(Reporting by Kanishka Singh in Bengaluru; Editing by Cynthia Osterman)

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