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Stocks of UK Food Delivery Company deliveroo The highest level in more than three years has jumped to its highest level on Monday after the company confirmed the company had received a $3.6 billion acquisition offer. doordash.
Deliveroo made the first announcement after European markets closed on Friday. In a follow-up update on Monday, it said it immediately suspended its £100 million ($135 million) share buyback program announced on March 18.
Deliveroo shares have risen 17.6% to 172.4p since January 2022 on Monday, at 11:18 am UK time.
Last week’s update showed that the company received a cash offer from Doordash on April 5, with a delivery of 180p per valuation of the company at about $3.6 billion, according to CNBC’s calculations from LSEG data.
Delivery of the stock price.
In a statement Friday, Deliveroo’s board said it had considered the proposal with its consultants and, if a solid offer is made, “remember” to recommend it to shareholders, but to comply with other terms. It added that further discussions are now being held with Doordash.
Deliveroo shares fell sharply in 2022 after the company was publicly released in London last year, with investors worried about growth in the food delivery market in the Covid-19 era, fierce industry competition and issues on workers’ rights in its gig economy model. In the following years, the company’s stock has been stable (albeit relatively heavy) away from its August 2021 peak of 386.1 pc per share.
Deliveroo operates in markets including the UK, France, Italy, Belgium, Ireland, Singapore and Qatar. Its European competitors include Germany Delivery Hero – Which one Selled its Driveoo stake in early 2024 – Uber Eat and Just eat.
In March, Deliveroo reported its first Annual profitFrom a loss before tax in 2023 to a profit of £12.2 million in 2024.
For part of it Posted The full-year 2024 net annual revenue of shareholders was attributed to US$123 million and is currently operating mainly in the United States and Canada, as well as some cities in Australia and New Zealand.
The grain delivery industry is prevalent, with regional businesses acquiring, Doordash acquired Finnish Wolt in 2021, and recently Deliveroo Parts for sale Earlier this year, its Hong Kong business was the delivery hero. Going east at the same time Ready to obtain Proposal by the investment group.
‘Floperoo’
Susannah Streeter, head of currency and markets at Hargreaves Lansdown, noted on Monday that deliveries at current offer of 180 pence per share would mean the company “will “fail to get rid of the ‘Floperoo’ label, and it was eliminated after the first outbreak of a disastrous IPO in 2021. ”
“Even if Deliveroo finally enters profitable territory, the indigestion round around its share price continues… Driveroo’s stumbling on grocery stores helps it make profitable, but still faces fierce competitors.”
Streeter said the deal would also “no effort” for the UK government, which is trying to increase the number of London-listed technology companies and represents the latest in a range of exports.
However, analysts at Citi said they did not expect Doordash to face major regulatory hurdles in taking over Driveroo, as these companies do not have any geographic overlap in their operations.
