Uber Acquires Additional Stake in Delivery Hero
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 48 minutes ago
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Should l Buy UBER?
Source: CNBC
- Stake Acquisition: Uber has agreed to purchase an additional 4.5% stake in German food delivery firm Delivery Hero for €20 per share, totaling approximately €270 million ($318 million), which, while below the Thursday closing price, represents a 22% premium over the one-month average share price.
- Prosus Divestment Commitment: Prosus now owns about 21% of Delivery Hero, down from approximately 27% when it announced its acquisition of Just Eat Takeaway.com last year, indicating its commitment to divest the necessary portion of its stake to comply with EU regulatory requirements for future mergers.
- Regulatory Environment Shift: Following scrutiny of Prosus's Just Eat deal, European regulators are reconsidering merger policies, potentially easing restrictions on large mergers to promote innovation and investment within the internal market.
- Market Competition Strategy: Prosus CEO Fabricio Bloisi has criticized Europe's merger policies, arguing that large mergers are essential for global competitiveness, and he emphasizes the need to change existing policies to support European firms' relevance in global markets.
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Analyst Views on UBER
Wall Street analysts forecast UBER stock price to rise
32 Analyst Rating
28 Buy
3 Hold
1 Sell
Strong Buy
Current: 77.280
Low
72.00
Averages
107.10
High
150.00
Current: 77.280
Low
72.00
Averages
107.10
High
150.00
About UBER
Uber Technologies, Inc. operates a technology platform that uses network and technology to power movement from point A to point B. It develops and operates technology applications supporting a variety of offerings on its platform (platform(s)). Its segments include Mobility, Delivery and Freight. Mobility products connect consumers with drivers who provide rides in a variety of vehicles, such as cars, auto rickshaws, motorbikes, minibuses, or taxis. Delivery offerings allow consumers to search for and discover local restaurants, order a meal, and either pick-up at the restaurant or have the meal delivered. In certain markets, the Delivery segment provides offerings for grocery, alcohol, and convenience store delivery as well as select other goods. The Freight segment connects carriers with shippers on its platform, and gives carriers upfront, pricing and the ability to book a shipment. The Freight segment also includes transportation management and other logistics service offerings.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Uber Acquires Additional Stake in Delivery Hero
- Acquisition Details: Uber announced it will purchase an additional 4.5% stake in Delivery Hero at €20 per share, totaling approximately €270 million ($318 million), which, while below Delivery Hero's Thursday closing price, represents a 22% premium over the one-month average share price.
- Regulatory Pressure Context: This transaction is part of Prosus's strategy to divest its Delivery Hero shares under EU regulatory pressure to facilitate its proposed €4.1 billion acquisition of Just Eat, highlighting the impact of regulatory environments on large merger deals.
- Prosus's Strategic Shift: Prosus has committed to selling the relevant portion of its Delivery Hero stake within the required timeframe, demonstrating its firm commitment to reducing its shareholding to meet regulatory demands while reflecting a strategic shift in its European market approach.
- Market Reaction Analysis: Although Uber's acquisition price is lower than Delivery Hero's recent stock price, the market's reaction to this deal could influence Uber's competitive position in the food delivery sector, especially in comparison to its rivals.
See More
Prosus Sells 4.5% Stake in Delivery Hero to Uber
- Stake Sale: Dutch technology investor Prosus sold approximately 13.6 million shares of Delivery Hero to Uber at €20 per share, generating about €270 million in gross proceeds, indicating a strategic adjustment in Prosus's investment portfolio.
- Ownership Change: This transaction reduces Prosus's stake in Delivery Hero from 26.3% to 21.8%, reflecting a potential decrease in confidence regarding its influence and decision-making power within the company.
- Market Reaction: The sale of shares by Prosus may have a short-term impact on Delivery Hero's stock price, particularly as Uber's acquisition raises market scrutiny on Delivery Hero's future performance.
- Investment Strategy Shift: Through this transaction, Prosus may be reconfiguring its investment portfolio to better navigate market changes and seek new growth opportunities, especially in the rapidly evolving technology sector.
See More
Uber Acquires Additional Stake in Delivery Hero
- Stake Acquisition: Uber has agreed to purchase an additional 4.5% stake in German food delivery firm Delivery Hero for €20 per share, totaling approximately €270 million ($318 million), which, while below the Thursday closing price, represents a 22% premium over the one-month average share price.
- Prosus Divestment Commitment: Prosus now owns about 21% of Delivery Hero, down from approximately 27% when it announced its acquisition of Just Eat Takeaway.com last year, indicating its commitment to divest the necessary portion of its stake to comply with EU regulatory requirements for future mergers.
- Regulatory Environment Shift: Following scrutiny of Prosus's Just Eat deal, European regulators are reconsidering merger policies, potentially easing restrictions on large mergers to promote innovation and investment within the internal market.
- Market Competition Strategy: Prosus CEO Fabricio Bloisi has criticized Europe's merger policies, arguing that large mergers are essential for global competitiveness, and he emphasizes the need to change existing policies to support European firms' relevance in global markets.
See More
Delivery Hero SE Welcomes Uber as a Long-Term Investor
Delivery Heroes Welcomes New Shareholder: Delivery Hero has announced the addition of a new long-term shareholder, Suber, to its investor base.
Strategic Partnership: The partnership with Suber is expected to enhance Delivery Hero's market position and operational capabilities.
Focus on Growth: The collaboration aims to drive growth and innovation within the company, aligning with its long-term strategic goals.
Market Impact: This development may influence investor confidence and market dynamics for Delivery Hero moving forward.
See More
Naspers' Prosus Stake in Delivery Hero to Drop from 26.3% to 21.8% Following Transaction
- Decrease in Delivery Hero's Stake: Delivery Hero's stake has decreased from 26.3% to 21.8% following a recent deal.
- Impact of the Deal: The reduction in stake indicates a strategic shift or financial adjustment within the company.
See More
Naspers Deal Expected to Generate Approximately €270 Million in Gross Proceeds for Prosus
- Deal Overview: A deal has been reached resulting in gross proceeds of approximately €270 million for ProSus.
- Financial Impact: The financial outcome of the deal is significant, indicating a strong market position for ProSus.
See More
Uber Acquires Additional Stake in Delivery Hero
- Acquisition Details: Uber announced it will purchase an additional 4.5% stake in Delivery Hero at €20 per share, totaling approximately €270 million ($318 million), which, while below Delivery Hero's Thursday closing price, represents a 22% premium over the one-month average share price.
- Regulatory Pressure Context: This transaction is part of Prosus's strategy to divest its Delivery Hero shares under EU regulatory pressure to facilitate its proposed €4.1 billion acquisition of Just Eat, highlighting the impact of regulatory environments on large merger deals.
- Prosus's Strategic Shift: Prosus has committed to selling the relevant portion of its Delivery Hero stake within the required timeframe, demonstrating its firm commitment to reducing its shareholding to meet regulatory demands while reflecting a strategic shift in its European market approach.
- Market Reaction Analysis: Although Uber's acquisition price is lower than Delivery Hero's recent stock price, the market's reaction to this deal could influence Uber's competitive position in the food delivery sector, especially in comparison to its rivals.
See More
Prosus Sells 4.5% Stake in Delivery Hero to Uber
- Stake Sale: Dutch technology investor Prosus sold approximately 13.6 million shares of Delivery Hero to Uber at €20 per share, generating about €270 million in gross proceeds, indicating a strategic adjustment in Prosus's investment portfolio.
- Ownership Change: This transaction reduces Prosus's stake in Delivery Hero from 26.3% to 21.8%, reflecting a potential decrease in confidence regarding its influence and decision-making power within the company.
- Market Reaction: The sale of shares by Prosus may have a short-term impact on Delivery Hero's stock price, particularly as Uber's acquisition raises market scrutiny on Delivery Hero's future performance.
- Investment Strategy Shift: Through this transaction, Prosus may be reconfiguring its investment portfolio to better navigate market changes and seek new growth opportunities, especially in the rapidly evolving technology sector.
See More
Uber Acquires Additional Stake in Delivery Hero
- Stake Acquisition: Uber has agreed to purchase an additional 4.5% stake in German food delivery firm Delivery Hero for €20 per share, totaling approximately €270 million ($318 million), which, while below the Thursday closing price, represents a 22% premium over the one-month average share price.
- Prosus Divestment Commitment: Prosus now owns about 21% of Delivery Hero, down from approximately 27% when it announced its acquisition of Just Eat Takeaway.com last year, indicating its commitment to divest the necessary portion of its stake to comply with EU regulatory requirements for future mergers.
- Regulatory Environment Shift: Following scrutiny of Prosus's Just Eat deal, European regulators are reconsidering merger policies, potentially easing restrictions on large mergers to promote innovation and investment within the internal market.
- Market Competition Strategy: Prosus CEO Fabricio Bloisi has criticized Europe's merger policies, arguing that large mergers are essential for global competitiveness, and he emphasizes the need to change existing policies to support European firms' relevance in global markets.
See More
Delivery Hero SE Welcomes Uber as a Long-Term Investor
Delivery Heroes Welcomes New Shareholder: Delivery Hero has announced the addition of a new long-term shareholder, Suber, to its investor base.
Strategic Partnership: The partnership with Suber is expected to enhance Delivery Hero's market position and operational capabilities.
Focus on Growth: The collaboration aims to drive growth and innovation within the company, aligning with its long-term strategic goals.
Market Impact: This development may influence investor confidence and market dynamics for Delivery Hero moving forward.
See More
Naspers' Prosus Stake in Delivery Hero to Drop from 26.3% to 21.8% Following Transaction
- Decrease in Delivery Hero's Stake: Delivery Hero's stake has decreased from 26.3% to 21.8% following a recent deal.
- Impact of the Deal: The reduction in stake indicates a strategic shift or financial adjustment within the company.
See More
Naspers Deal Expected to Generate Approximately €270 Million in Gross Proceeds for Prosus
- Deal Overview: A deal has been reached resulting in gross proceeds of approximately €270 million for ProSus.
- Financial Impact: The financial outcome of the deal is significant, indicating a strong market position for ProSus.
See More
