Foodpanda parent denies collapse in talks to sell South-east Asian units
Sharanya Pillai
DISCUSSIONS to sell foodpanda in selected South-east Asian markets are still ongoing and have not collapsed, food delivery giant Delivery Hero announced on Friday (Feb 2).
“There are market rumours that the negotiations for the potential sale have collapsed. We confirm that the negotiations for the potential sale are ongoing, and, thus, the rumours are false,” the Germany-based company, which owns foodpanda, said.
The announcement follows a report on Friday by Malaysian news outlet Business Today, which said that Grab’s bid to acquire foodpanda had failed over a pricing dispute.
Singapore-based Grab had deemed the proposed price too high, the report said, citing sources. It added that Delivery Hero is reportedly still moving forward with plans to divest foodpanda in Malaysia.
Delivery Hero did not directly address in its statement if discussions with Grab had failed. The Frankfurt-listed company’s shares sank 10.2 per cent to 19.31 euros as at 8.34 pm Singapore time, while Grab shares were up 2 per cent to US$3.13.
Delivery Hero’s plans to offload foodpanda come amid growing pressure for profitability. It confirmed in September last year that negotiations were ongoing for a potential sale of foodpanda in Singapore and six other markets: Malaysia, the Philippines, Thailand, Cambodia, Myanmar and Laos.
A German business magazine had then cited Grab as a potential buyer, and said that it could pay over one billion euros (S$1.46 billion) for the acquisition.
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