<

DELIVERY HERO AG (FRA:DE000A2E) Delivery Hero SE receives the written regulatory approval from the Korea Fair Trade Commission and is likely to have to recognize a significant impairment loss due to the increased price of the Delivery Hero share

Transparency directive : regulatory news

03/02/2021 18:50

DGAP-Ad-hoc: Delivery Hero SE / Key word(s): Mergers & Acquisitions/Regulatory Approval
Delivery Hero SE receives the written regulatory approval from the Korea Fair Trade Commission and is likely to have to recognize a significant impairment loss due to the increased price of the Delivery Hero share

03-Feb-2021 / 18:50 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.


Delivery Hero SE receives the written regulatory approval from the Korea Fair Trade Commission and is likely to have to recognize a significant impairment loss due to the increased price of the Delivery Hero share and the resulting higher consideration value

Berlin, February 3, 2021 - Yesterday afternoon in South Korea, the Korea Fair Trade Commission ("KFTC") has provided Delivery Hero SE ("Delivery Hero") with its written decision confirming its conditional regulatory approval of Delivery Hero's joint venture with Woowa Brothers Corp. ("Woowa"), the operator of South Korea's largest food delivery platform. The approval is essentially subject to the same conditions as announced on December 28, 2020, i.e. the divestiture of Delivery Hero's 100% South-Korean subsidiary Delivery Hero Korea LLC. ("Yogiyo") and the maintenance of the status quo of Yogiyo until the completion of its divestiture. The objective is to close the transaction during March 2021.

Delivery Hero had announced the purchase of shares in, and the establishment of a joint venture with the management of, Woowa on December 13, 2019. The transaction valued Woowa on a cash free and debt free basis at USD 4.0 billion (EUR 3.6 billion) before certain adjustments. The consideration was agreed to consist of up to approx. EUR 1.7 billion in cash and up to approx. EUR 1.9 billion in new shares in Delivery Hero, based on the back-then agreed 20-days volume weighted average price of the Delivery Hero share of EUR 47.47.

Since the signing of the transaction back in December 2019 and until the approval by the Korean Fair Trade Commission, the Delivery Hero share price and therefore the value of the consideration have appreciated significantly as a result of Delivery Hero's strong operational performance. If this remains to be the case until closing, and despite Woowa's strong operational development, Delivery Hero will, based on this afternoon's analysis of Delivery Hero's Management Board and in accordance with IFRS, have to recognize a significant impairment loss on the goodwill of the Korean business immediately upon, or in timely proximity to, the closing of the Woowa transaction. The size of the potential impairment will depend on the Delivery Hero share price on the day of closing. Based on yesterday's XETRA closing share price of EUR 128.65, the potential impairment could amount to up to EUR 1.4 billion. The impairment is neither due to the performance of Woowa's operational business, nor cash relevant. It does not change the initially envisaged dilution of shares in Delivery Hero.

 

*************

Investor Relations Enquiries

Daniel Fard-Yazdani
Head of Investor Relations

ir@deliveryhero.com
Media Enquiries

Sigrid Dalberg-Krajewski
Director of Corporate Communications

press@deliveryhero.com
 

 

Disclaimer

This release may contain forward looking statements, estimates, opinions and projections with respect to anticipated future performance of Delivery Hero SE ("forward-looking statements"). These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes," "estimates," "anticipates," "expects," "intends," "may," "will" or "should" or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. Forward-looking statements are based on the current views, expectations and assumptions of the management of Delivery Hero SE and involve significant known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Forward-looking statements should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. Any forward-looking statements included herein only speak as at the date of this release. We undertake no obligation, and do not expect to publicly update, or publicly revise, any of the information, forward-looking statements or the conclusions contained herein or to reflect new events or circumstances or to correct any inaccuracies which may become apparent subsequent to the date hereof, whether as a result of new information, future events or otherwise. We accept no liability whatsoever in respect of the achievement of such forward-looking statements and assumptions.

Contact:
Daniel Fard-Yazdani
Head of Investor Relations

 


03-Feb-2021 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de


Language: English
Company: Delivery Hero SE
Oranienburger Straße 70
10117 Berlin
Germany
Phone: +49 (0)30 5444 59 105
Fax: +49 (0)30 5444 59 024
E-mail: ir@deliveryhero.com
Internet: www.deliveryhero.com
ISIN: DE000A2E4K43
WKN: A2E4K4
Indices: DAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; London, OTC QB, OTC QX, SIX, Vienna Stock Exchange
EQS News ID: 1165636

 
End of Announcement DGAP News Service

1165636  03-Feb-2021 CET/CEST

fncls.ssp?fn=show_t_gif&application_id=1165636&application_name=news&site_id=symex


Other stories

29/03/2024 01:30
28/03/2024 19:33
28/03/2024 18:38
29/03/2024 00:18
28/03/2024 15:40
28/03/2024 13:03
28/03/2024 20:19
28/03/2024 19:35
29/03/2024 03:31
29/03/2024 03:31
28/03/2024 22:03
28/03/2024 19:40
29/03/2024 01:58
28/03/2024 14:30
29/03/2024 03:31
29/03/2024 03:23
29/03/2024 04:47
28/03/2024 19:01
27/03/2024 15:52
27/03/2024 19:23
29/03/2024 03:00
27/03/2024 22:02
28/03/2024 21:58
29/03/2024 01:01
29/03/2024 03:31
28/03/2024 18:12
28/03/2024 19:31
28/03/2024 23:33
28/03/2024 17:28
29/03/2024 00:26
27/03/2024 21:46
29/03/2024 01:26
28/03/2024 12:18
28/03/2024 17:55
29/03/2024 00:01
28/03/2024 13:25
28/03/2024 19:18
28/03/2024 11:40