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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