Sunday, October 2

Delivery Hero becomes the majority shareholder of Glovo, of which it will control more than 80%

The food delivery platform at home Delivery Hero has reached an agreement to acquire an additional 39.4% stake to the one it already holds in Glovo, for which it will become the main shareholder of the Spanish company exceeding 80% of the share capital, as reported by the company in a statement.

The operation, which is expected to be completed during the second quarter of the year that has just begun once the corresponding authorizations have been received, will be carried out through the exchange of new Delivey Hero shares for Glovo shares. The operation comes at a time of clear transformation of the sector as a consequence of the obligation within the EU framework to substantially modify the business model and the contracting system for delivery drivers.

“As European-born tech champions, Delivery Hero and Glovo are complemented by their deep delivery experience and geographic footprint. The two companies are united by a shared passion for multi-category delivery and fast trading, as well as their vision. for the industry. Delivery Hero and Glovo are founding members of the European Purpose Project and have led the European discourse on the future of platform work, “explained Delivery Hero.

The German food delivery firm pointed out that it has been a significant shareholder of Glovo for years, with a stake of around 44%, so this new operation will allow it to exceed 80% in the shareholding of the Catalan company. This reinforcement of its position in Glovo will require the fulfillment of some conditions and regulatory approval in different countries in which they operate, although its closing is expected for the second quarter of 2022.

Shareholders

Delivery Hero pointed out that the rest of the shareholders will be able to join the operation before its closing and indicated that it will give shares of its company in exchange for Glovo titles, for which it will issue new titles that it will exchange for others of Glovo at a rate exchange rate in which the valuation of the acquired company will be taken into account.

“Following the closure, Glovo will continue operations with its existing brand and platform under its current management team, led by its two founders who will continue to invest in Glovo. Together with Delivery Hero, they will leverage shared technology to further improve efficiencies and accelerate product development “, they explained from Delivery Hero.

The operation has had the financial advice of JP Morgan, while Cuatrecasas has acted as legal adviser to Delivery Hero. Morgan Stanley has acted as financial advisor and Latham & Watkins as legal advisor to the selling shareholders, while Uría Menéndez has advised Glovo.

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The CEO and co-founder of Delivery Hero, Niklas Östberg, said that the team of his company has “admired and supported” Glovo for years and noted that this firm has been a pioneer in the industry by offering a multivertical service from the beginning.

“I believe our potential is untapped and I am happy to have found a partner that matches our ambition, culture and will continue to support this adventure we have embarked on to further drive innovation, strengthen our multi-category offering and create additional value. for all our stakeholders and the industry “, underlined the CEO of Glovo, Óscar Pierre.

Reference-www.elperiodico.com

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