Naspers is obtaining 22,359,857 shares of Delivery Hero stock from Rocket Internet for €660m (US$775m) at a price of €29.50 per share in a move that will see it increase its stake in the food ordering and delivery firm to 23.6 percent.
The deal makes Naspers the largest shareholder in Delivery Hero. Naspers initially invested in Delivery Hero in May of this year. Since then, the company executed a successful IPO in June and delivered strong half-year results as a public company on September 26, 2017.
“The food delivery sector is still underpenetrated and growing rapidly across the world. Many markets have experienced significant traction already, but we believe the potential is far greater in high-growth markets than that observed in the West,” Naspers CEO, Bob van Dijk said.
Growing its position in online food ordering and delivery is consistent with Naspers’ strategy to invest in platforms with global potential that offer online marketplace services in high-growth markets.
In addition to the investment in Delivery Hero, Naspers recently led an $80M Series E investment in Swiggy, a leading food ordering and delivery platform in India. Through majority-owned Movile, Naspers has a leading food delivery business in iFood, operating in Brazil and Mexico (under the brand SinDelantal), and Naspers also operates Mr. D Food, a food delivery business in South Africa.
The transaction is subject to regulatory approval, will be funded from existing resources, and is expected to close in the first quarter of 2018.