Delivery Hero (DHER) Soars 8.5% After Uber Secures $318M Stake Expansion

Key Highlights

• Uber has committed to purchasing another 4.5% ownership position in Delivery Hero for approximately $318 million (270 million euros)
• The transaction valued shares at 20 euros each — lower than Delivery Hero’s Thursday closing price but representing a 22% markup over the trailing one-month average
• Delivery Hero shares surged approximately 8.5% following the announcement
• The sale by Prosus stems from European Union regulatory mandates requiring a reduction in its Delivery Hero ownership to secure approval for its 4.1 billion euro Just Eat acquisition
• Prosus currently maintains approximately 21% of Delivery Hero, reduced from about 27% when the Just Eat transaction was initially revealed

Uber is expanding its investment in Delivery Hero through a $318 million agreement to acquire an additional 4.5% ownership stake from Prosus, the German company’s primary shareholder.

The transaction was structured at 20 euros per share. While this falls short of Delivery Hero’s Thursday closing value following a 7% gain, Prosus indicates it reflects a 22% premium compared to the one-month average trading price.

Delivery Hero shares rallied approximately 8.5% on the announcement. Uber experienced a modest 0.8% increase.

Uber Technologies, Inc., UBER

This marks Uber’s second significant investment in Delivery Hero. In 2024, the ride-hailing giant acquired $300 million worth of freshly-issued Delivery Hero shares. Friday’s transaction represents a continuation of that strategy.

The regulatory context is crucial. Prosus committed last year to acquiring Just Eat Takeaway.com for 4.1 billion euros. European Commission officials indicated they would greenlight the transaction — conditional on Prosus substantially reducing its Delivery Hero shareholding.

This suggests additional stake sales could be forthcoming.

European Antitrust Policy Under Review

The transaction arrives amid evolving European competition regulations. According to Financial Times reporting this week, the European Commission is exploring potential modifications to its approach toward major corporate mergers.

The Commission is reportedly evaluating whether to place greater emphasis on considerations such as “innovation, investment and resilience of the internal market” during deal assessments.

European competition commissioner Teresa Ribera conveyed to the FT that the EU seeks to facilitate “pro-competitive mergers” enabling European businesses to maintain competitiveness in international markets.

Prosus CEO Fabricio Bloisi has been outspoken on this matter. In a January interview with CNBC, he argued that large-scale mergers are essential for global competitiveness, and that Europe’s history of blocking consolidation has impeded regional growth.

Deal Specifics

Uber is acquiring the 4.5% stake at 20 euros per share. Prosus will receive total gross proceeds of approximately 270 million euros, equivalent to $318 million.

Delivery Hero stock had already experienced significant upward momentum before the deal’s confirmation, climbing roughly 7% on Thursday. Friday’s 8.54% surge extended those gains, with ticker DHER-FF adding 1.69 euros during trading.

Prosus (PRX-NL) registered approximately 0.4% gains at the time of publication.

The Just Eat acquisition continues to await final regulatory approval. Prosus must continue reducing its Delivery Hero holdings to fulfill the Commission’s stipulations.

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