Naspers is forking out R10 billion ($775 million) to increase its shareholding in Delivery Hero, one of Europe’s fastest-growing online food order and delivery businesses.
Africa’s biggest internet firm said on Thursday it will acquire an additional 13% stake in Delivery Hero, pushing its shareholding to 23.6%.
The acquisition will make Naspers the largest shareholder in Delivery Hero.
Naspers initially invested in Delivery Hero in May of this year. Since then, the company executed a successful IPO in June and delivered strong half-year results as a public company on September 26, 2017.
“Delivery Hero is already the leading online food ordering and delivery marketplace in most of the countries in which it operates and our increased investment demonstrates our confidence in the long-term prospects for the company,” Naspers CEO, Bob van Dijk said.
“The food delivery sector is still underpenetrated and growing rapidly across the world. Many markets have experienced significant traction already, but we believe the potential is far greater in high-growth markets than that observed in the West.”
Growing its position in online food ordering and delivery is consistent with Naspers’ strategy to invest in platforms with global potential that offer online marketplace services in high-growth markets.
The online food delivery sector is still underpenetrated and growing rapidly across the world.
The company said Delivery Hero has outstanding growth prospects and has high levels of consumer engagement in the markets where it operates.
Founded in February 2008 and listed in June 2017, Delivery Hero offers online food delivery services across more than 40 countries in Europe, the Middle East & North Africa (MENA, Latin America, and the Asia-Pacific region. It also operates its own last-mile food delivery primarily in more than 50 high-density urban areas around the world.
“We are delighted that Naspers is increasing its stake in Delivery Hero. We share the same long-term belief in our business and we will continue to benefit from their experience to grow our business globally,” said Niklas Östberg, CEO, Delivery Hero.
The transaction is subject to regulatory approval, will be funded from existing resources, and is expected to close in the first quarter of 2018.