News Contact Us

Delivery Hero gains approval for collaboration with Woowa Brothers

Author : Pankaj Singh | Published Date : 2021-02-05 

Europe-based online food-delivery service provider, Delivery Hero SE, has reportedly declared that the company has sought regulatory approval for its joint venture with leading food delivery operator in South Korea, namely, Woowa Brothers Corp, from the Korea Fair Trade Commission.

For the uninitiated, the approval is mainly subject to the divestiture of Delivery Hero Korea LLC, a 100% South-Korean subsidiary of the online food-delivery firm as well as the maintenance of Yogiyo’s status quo until the completion of the divestiture. However, the main objective of the company is to close the transaction in March 2021.

Previously on December 13, 2019, Delivery Hero had revealed the purchase of shares towards the establishment of the joint venture with the management of Woowa. It further stated that the transaction valued Woowa at $4.0 billion on cash free and debt free terms prior to a few adjustments.

Following this negotiation, the consideration amount consisted of over 1.7 billion euros in cash and around 1.9 billion euros in new shares of the European company.

Delivery Hero had shared its thoughts on anticipating a significant impairment loss on account of the escalated prices of its shares from the duration of signing the transaction in December 2019 to seeking the approval from the Korean Fair Trade Commission.

As per the latest sources, Delivery Hero is now expecting an impairment of up to 1.4 billion euros ($1.7 billion) following its takeover of Woowa Brothers, as the company’s shares have witnessed a rise by 162%, and the consideration share is accordingly appreciated. It also stated that the closing share price on Tuesday reached 128.65 euros, and the amount of impairment was valued at 1.4 billion euros., Apparently, the impairment that was incurred, is neither due to Woowa's performance in operational businesses nor cash issues.

Source Credits: https://www.nasdaq.com/articles/delivery-hero-gets-regulatory-approval-in-south-korea-for-jv-with-woowa-brothers-2021-02

About Author

Pankaj Singh

Pankaj Singh

Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605

Related News

Teenage Engineering chosen by Carl Pei’s Nothing as founding partner

Published Date: 2021-02-26         Author: Pankaj Singh

Teenage Engineering, a Stockholm-based music equipment design firm has recently been tapped by Nothing, an emerging consumer tech brand created by ex-OnePlus executive Carl Pei to work collaboratively on upcoming product releases. According to Pei, the design firm, which is one of the founding partn... Read More

PepsiCo introduces new hydrating line of juice beverages for youngsters

Published Date: 2021-02-25         Author: Pankaj Singh

PepsiCo Inc., an American multinational food and beverage corporation, has reportedly introduced a new product line, Frutly, which is basically a hydrating juice water, specially designed for youngsters. The new entrant to PepsiCo’s juice category, comprises fruit juice, water, and electrol... Read More

Blackstone Group receives CCI nod for Piramal Glass acquisition

Published Date: 2021-02-24         Author: Pankaj Singh

The Competition Commission of India (CCI) has reportedly approved Blackstone Group’s deal to acquire the global specialist in design, production, and decoration of premium glass packaging, Piramal Glass. Sources with relevant information stated that this deal will be the heftiest ever trans... Read More

© 2021 Fractovia. All Rights Reserved