Delivery Hero (ETR:DHER) said it has agreed to divest its food delivery operations in Taiwan to Grab for $600 million in cash, describing the transaction as the first major milestone in the company’s strategic review announced in mid-December 2025.
On a conference call held at short notice to discuss the announcement, Chief Executive Officer Niklas Östberg said the deal is the company’s fifth asset monetization and is intended to “crystallize fundamental value” for what he called a market-leading asset. Östberg added that while Delivery Hero’s operational performance remains strong, the company believes public markets have not fully reflected the intrinsic value of its global operations. He also noted that completing a carve-out transaction had required extensive work over roughly the past nine months, and characterized the negotiations as volatile but ultimately constructive for both parties.
Transaction scope and timing
The company expects the transaction to close in the second half of 2026, subject to customary regulatory approvals. To facilitate a separation from Delivery Hero’s global infrastructure, the company plans to provide support services for a migration period of up to 12 months after closing. In the Q&A, management also indicated that technology support would continue through 2026 and “most part of 2027” as part of transitional services.
Balance sheet impact and leverage
Popp said the divestment would “significantly” strengthen Delivery Hero’s capital structure, reducing net leverage from approximately 2.7x to 2.2x.
During the question-and-answer session, UBS analyst Joe Barnet-Lamb asked about the company’s recent issuance of a $1.4 billion term loan and why the amount exceeded the convertible bond buyback figure the company had referenced previously—particularly given the additional cash expected from the Taiwan sale. Management reiterated that the term loan and proceeds from the divestment were aimed at repaying existing debt, optimizing the company’s debt structure, and strengthening the balance sheet, while maintaining flexibility to respond to future opportunities or challenges.
Profitability and EBITDA considerations
Citi analyst Monique Pollard asked about the Taiwan business’s profitability and the potential impact on Delivery Hero’s results once the asset is sold. Management said Taiwan contributes positively to adjusted EBITDA at the country level, but when platform cost allocations are included, the impact is expected to be marginal. The company said it expects the overall impact on adjusted EBITDA and cash flow in 2026—and during the transitional service period—to be marginal, and noted it would expect to adjust costs over time to align with the size of the remaining business beyond the transition period.
Valuation context and competitive position
Morgan Stanley analyst Luke Holbrook asked how the implied valuation compared with a prior, referenced transaction involving Uber that had been discussed in the market around 18 months earlier. Östberg said deal multiples are not directly comparable and emphasized the difference between a buyer that is already operating in the market versus a buyer entering as a standalone operator. He added that market conditions have also changed, citing multiple contraction and broader geopolitical uncertainty, but said Delivery Hero believed it had reached a good outcome that is “significantly incremental” to how the company is valued today.
Deutsche Bank analyst Silvia Cuneo requested more color on Delivery Hero’s market position in Taiwan. Östberg said the business holds a “very strong position,” and that profitability in the market has improved significantly over the past couple of years. He described geographic variation in relative strength versus Uber, with areas where each player is larger, but maintained that the overall competitive position is strong.
Limited interim updates on broader strategic review
Management stressed that the Taiwan divestment is only one element of several ongoing reviews. Popp said the company would not provide interim updates to protect the integrity of those processes and would inform the market only when definitive agreements are signed. Executives also noted the company will publish full-year results on Thursday and host an analyst call then, and therefore did not comment on broader group performance or provide 2026 guidance during this event.
In closing remarks, Östberg thanked the Taiwan team for building what he called a “tremendous business” and said he believes Grab will be “an excellent owner,” describing the sale as a first good step in Delivery Hero’s broader strategic effort.
About Delivery Hero (ETR:DHER)
Delivery Hero SE offers online food ordering and delivery services. It operates approximately in 70 countries in Asia, the Middle East, Africa, Europe, and Latin America. The company was founded in 2011 and is headquartered in Berlin, Germany.
