Delivery Hero raises USD 2.56 bln to fund Woowa deal

Friday 17 January 2020 14:59 CET | News

Food delivery group Delivery Hero has raised almost USD 2.56 billion over night from the sale of convertible bonds and new shares. 

According to Reuters, the purpose of this move is to help fund its USD 4 billion takeover of South Korea’s food delivery app owner Woowa Brothers. The German group stated it received gross proceeds from two convertible bonds issues and another amount of money from a capital increase, in which it sold new shares equal to 4.3% of its equity capital. 

Earlier in 2020, Delivery Hero agreed a USD 4 billion deal to buy Woowa Brothers, ratcheting up consolidation in the industry as it expands in Asia’s fast-growing but crowded market, Reuters reports. 

South Korea’s online market for food delivery and pickup has more than doubled over the past five years to USD 5.9 billion – bigger than Japan and Germany’s markets combined.

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Keywords: Delivery Hero, Woowa, acquisition, delivery app, South Korea
Categories: Payments & Commerce
Countries: Asia
This article is part of category

Payments & Commerce