Delivery Hero Sells Stake in Deliveroo, Shares Plunge

The sale, fetching less than a third of the initial investment, prompts a negative reaction in the market, impacting both companies' shares.

Delivery Hero, a German food delivery company, has sold its 4.5% stake in British food ordering platform Deliveroo, causing its own shares to fall to a record low.
The sale of 68 million shares, at a price of £1.13 per share, fetched roughly £76.8 million for Delivery Hero, less than a third of what it paid for the shares in 2021.
Delivery Hero stated that the sale was part of its commitment to disciplined capital allocation, allowing it to better focus its cash resources.
Deliveroo's shares also reacted negatively to the news, plunging as much as 7%.
Industry analysts suggest that the sale could impact potential merger and acquisition activity for Deliveroo, as Delivery Hero was considered a plausible acquirer.