Deliveroo shares, the London -based food delivery service, are reaching three -year maximums on Monday after it received an acquisition offer proposed for $ 3.6 billion of Dordash.
Betweenwoo he announced the offer after the markets closed in Europe on Friday. On Monday, the company also said that it was suspending a repurchase of shares of $ 133.5 million that had announced last month.
Between Woo on Friday that his Board informed Dordash that if a company offer is made in the financial terms provided, he will recommend the offer to his shareholders.
Between Woo, he added that his Board has decided to participate in conversations with Dordash about the possible offer and has given the company access to due diligence.
Among Woo that Dordash must decide for May 23 if he plans to make a firm purchase offer or not.
The proposed agreement is produced a few months after the Prosus Technology Investment Company agreed to buy a food delivery giant Just eat takeoway.com for 4,100 million euros ($ 4.29 billion). The acquisition of Just Eat Takeaway.com will increase the food delivery portfolio of Prosus in Europe, a movement that Dordash is also looking to do.
Dordash currently directs his business in the United States, Canada, New Zealand and Australia.
Deliveroo, which was founded in 2013, operates in 10 markets around the world, including the United Kingdom, Italy and France. The company reported its first annual gain last year.
In January 2024, the delivery hero sold his minority participation in Deliveroo after maintaining it for less than three years. The two companies worked together earlier this year, with the delivery hero buying some of Hong Kong’s assets between Woo after the company decided to get out of that market.
Ronald Josey de Citi Investment Research can see some reasons why Dordash is interested in Deliveroo.
“While we continue to believe that Dordash focuses more on organic expansion, Delivingo fulfills several of the melting and acquisition criteria of Dordash, including the expansion of geographies and the total directionable market by which it would take a time of Dordash to do organically while delivering a long -term free cash flow,” he wrote.
Deliveroo shares rose more than 17% in the London Stock Exchange on Monday.
