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Delivery Hero to raise up to US$1.5 billion in convertible bonds

Delivery Hero to raise up to US$1.5 billion in convertible bonds

FILE PHOTO: The Delivery Hero logo is pictured at its headquarters in Berlin, Germany, August 18, 2020. REUTERS/Fabrizio Bensch/File Photo

BERLIN: Delivery Hero is issuing convertible bonds worth up to €1.25 billion (US$1.48 billion) to allow the German online food delivery company to take advantage of possible investment opportunities, it said on Thursday.

The dual tranche bonds due 2026 and 2029, which will be issued on or around Sept. 10, will be converted into newly issued shares.

The loss-making company said last month it was not considering making an offer for its British rival Deliveroo, days after the German company acquired a 5.09 per cent stake in the London-listed online food delivery company.

Delivery Hero cannot bid for Deliveroo for six months, according to British takeover rules, but the Frankfurt-listed company said it could choose to make an offer with the agreement of Deliveroo's board and under some other circumstances.

Founded in 2011, Delivery Hero operates in about 50 countries, with particular strength in Asia, where it owns the Foodpanda brand. However, it does not operate in Britain, which is Deliveroo's largest market.

Source: Reuters

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