FRANKFURT (dpa-AFX) - Delivery Hero shares extended their recent recovery in premarket trading on Friday. Fueled by a report of major shareholders exerting pressure on the food delivery service, the stock climbed 5.5 percent to EUR18.51 on the Tradegate platform. This positioned the shares for a potential fifth consecutive day of gains, after having neared their record low from February 2024 just a week ago.
According to a Bloomberg report on Thursday evening, citing people familiar with the matter, the company is under pressure from several large shareholders to undertake a strategic review. The push comes amid increasing consolidation within the food delivery sector. Some significant stakeholders are urging management to consider selling the company or divesting certain business units.
The reported calls for a strategic shift and industry consolidation indicate that change is afoot, commented Barclays analyst Andrew Ross. He noted that he has been highlighting for months that the status quo at Delivery Hero is unsustainable. JPMorgan analyst Marcus Diebel had already mentioned two weeks ago that the company's current valuation level could attract interest from strategic investors.
However, an industry expert remarked on Thursday evening that there was little fundamentally new in the news at first glance, pointing out that consolidation has been underway in the sector for some time. Internet holding company Prosus, which also owns a stake in Delivery Hero, acquired British rival Just Eat Takeaway earlier this year and subsequently announced plans to reduce its holding in Delivery Hero.
It is hardly surprising that shareholders are dissatisfied with the stock's performance. Around 13 months ago, shares were trading at just over EUR42. So far in 2025, the price has dropped by 35 percent./tih/edh/mis
