DGAP-News: Delivery Hero SE / Key word(s): Regulatory Approval/Mergers & Acquisitions
Berlin, 28 December 2020 - Following the press release by the Korea Fair Trade Commission ("KFTC") today, Delivery Hero SE ("Delivery Hero"), the world's leading local delivery platform, will receive conditional regulatory approval of its strategic partnership with Woowa Brothers Corp. ("Woowa"). Delivery Hero expects to receive the final written approval and closing to occur in the first quarter of 2021.
The transaction includes the establishment of a joint venture in Singapore. The transaction agreements were signed on December 13th, 2019, and the transaction has since been under review by the KFTC. As agreed at signing of the transaction in December 2019 and based on the then-agreed volume-weighted average price of the Delivery Hero share and valuation of Woowa, the consideration consists of both a cash and an equity component (approximately €1.7 billion in cash and approximately 40 million in Delivery Hero shares). This corresponded to US$ 4.0 billion, or €3.6 billion, on a cash and debt free basis (before customary adjustments) at the time of signing, and prior to the share price development between December 2019 and closing.
Bongjin Kim, CEO and Founder of Woowa, said: "There is tremendous potential in the Korean food delivery market and we are very excited to partner up with Delivery Hero to benefit from their knowledge around logistics, technology, and scaling businesses. Our partnership will move the whole ecosystem forward, and we will work together to innovate the delivery industry in Asia."
Local innovation supported by global insights
Establishing a joint venture to foster innovation in Asia
Remedies required for approval of the partnership
The behavioural remedies are designed to maintain the status quo of Delivery Hero Korea LLC until the completion of the divestiture: a) separate and independent operations of Delivery Hero's South Korean subsidiary Delivery Hero Korea LLC from Delivery Hero's and Woowa's other delivery apps, b) prohibition to any change in the actual commission rate applied to restaurants, c) monthly use of at least the same promotion amount used in the same month of the previous year and prohibition of discrimination, d) prohibition to change delivery app access or speed of connection, user interface, information provided, etc., and to coerced conversion, or solicitation to convert, to both parties' other affiliated delivery apps, e) prohibition to disadvantageous changes to the working conditions of Yogiyo riders or soliciting them to Woowa, and f) prohibition to transfer and sharing of data.
28.12.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
Delivery Hero SE
Oranienburger Straße 70
+49 (0)30 5444 59 105
+49 (0)30 5444 59 024
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