Delivery Hero investor pressures company to sell assets

Aspex Management, Delivery Hero’s second-largest shareholder, threatened to try to replace management if the company does not sell certain assets, the Hong Kong investor said in a letter seen by Bloomberg.

Delivery Hero is a Berlin-based food delivery company that operates in more than 70 countries, according to its website.

Aspex, which holds about 9.2% of Delivery Hero stock, said single-country divestitures or minority stake sales would not be sufficient.

The investor said there is “broad-based skepticism among shareholders” about the urgency of Delivery Hero’s strategic review and said it would assess legal steps, including pursuing a change in leadership, absent a credible near-term reset.

Aspex said the company’s broad geographic footprint has hampered profitability vs. peers and pointed to legal provisions and legal-related contingent liabilities of more than 1.4 billion euros (around US$1.6 billion).

Delivery Hero’s shares are down almost a third over the past 12 months, leaving a market value near 5 billion euros (around US$5.7 billion).

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Delivery Hero growth hides sharp regional gaps

Delivery Hero has talked up faster growth, yet results vary by region, which adds context to investor calls for asset sales 1.
In the second quarter, Gross Merchandise Value (GMV), the total value of orders processed on its platforms, rose 26% in Middle East & North Africa and 30% in the Americas year on year. Figures use constant currency and exclude effects from hyperinflationary accounting 2.
Asia moved the other way, with GMV down 2% year on year on a like for like basis in Q2. Aspex Management argues the wide geographic footprint can drag on profitability 2.

Investor pressure runs into the company’s platform plan

Aspex Management, Delivery Hero’s second-largest shareholder, wants asset sales. It also warned it could pursue steps including a change in leadership without a credible near-term reset, according to a letter seen by Bloomberg.
That stance may clash with Delivery Hero’s technology plan, which focuses on moving businesses onto a single global platform to cut costs 2.
Delivery Hero has been migrating acquired brands like Glovo, a Spain-founded food delivery company Delivery Hero acquired, onto a unified global platform. The company said the shift helped Glovo cut delivery cost per order by 10% and reduce late deliveries by 10%, while raising advertising revenue 29% 2.
Aspex said single-country divestitures or minority stake sales would fall short. It wants bigger moves, though Bloomberg did not specify which country operations could be sold.