On July 16, Uber rose 3.15% in regular trading, trading at $74.02 per share, with turnover of $171 million. The stock rebounded after management provided positive financial projections alongside the formal announcement of its Delivery Hero acquisition.
Uber officially launched a cash tender offer for German food delivery company Delivery Hero at €41.50 per share, representing an equity value of $14.8 billion. CEO Dara Khosrowshahi stated the transaction is expected to be accretive to non-GAAP earnings per share upon closing, with high-single-digit percentage accretion by year three. Management also noted that Delivery Hero's net commission rate is currently higher than Uber's, and cited a clear regulatory pathway to closing.
Uber currently holds approximately 37% economic interest in Delivery Hero through direct shares and derivatives. Prosus has agreed to tender its 16.8% stake. The deal encompasses Delivery Hero's delivery operations across 50 markets, which generated $42.5 billion in gross bookings last year. A €200 million termination fee applies under certain conditions.
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