BERLIN, GERMANY – SEPTEMBER 4: Delivery Hero offices photographed on September 4, 2020 in Berlin, Germany. (Photo by Jeremy Mohler/Getty Images)
Jeremy Mohler | Getty Images Entertainment | Getty Images
European food delivery company delivery hero It said it plans to spin off its Middle East business, Talabat, and list it on the Dubai Stock Exchange later this year.
In a brief statement on Thursday, Delivery Hero said it was “preparing to list its Talabat business on the Dubai Financial Market in the fourth quarter”.
“Delivery Hero may seek a listing through a secondary stake sale, which will retain a majority stake in the locally listed entity post-IPO,” Delivery Hero said in a statement.
The company did not disclose valuation, stock price target, number of shares to be listed or a specific timetable beyond the fourth quarter.
Talabat’s initial public offering remains subject to market conditions, approval of the prospectus by securities regulators and approval by Delivery Hero’s management and supervisory boards.
After the news broke, Delivery Hero CEO Niklas Ostberg said in a phone interview with CNBC that the proposed Talabat market listing is to attract local investors in the region to co-invest and support the sector.
“We’re always looking for these opportunities to bring in stronger support,” Osterberg told CNBC on Thursday. “The Middle East is an important part of our business… and for us, further establishing a strong base there Of clear value.”
Talabat operates in countries across the Middle East, including Bahrain, Egypt, Iraq, Jordan, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. The Middle East and North America are Delivery Hero’s second-largest region, accounting for about 28% of the company’s total second-quarter revenue, according to separate financial results released Thursday.
This is also a key growth area for the company. In the three months to June, the division’s revenue was 874.7 million euros, an increase of 37% year-on-year.
Osterberg declined to comment on whether Delivery Hero is actively considering further opportunities, such as the sale of key strategic assets and individual unit IPOs, but told CNBC the company is “always open to such value-add opportunities.”
“When we see that it has clear value and it makes sense financially and strategically, we’re certainly always open to it,” Osterberg said.
“I can’t comment on that specific case, but I think you would think there’s a clear — both strategic and financial — reason for us to see it.”
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