The board of directors of Delivery Hero, the parent company of Glovo, has approved the public acquisition offer presented by Uber Technologies for a value of 14.8 billion dollars (12.77 billion euros) and plans to advise its shareholders to participate in the operation.
"The board of directors and the supervisory board of Delivery Hero have independently reviewed and evaluated the offer document published by Uber and the terms and conditions of the offer. They consider that the offer is in the best interest of the company, its shareholders, employees, and other stakeholders. Therefore, they support the offer and recommend that the shareholders of Delivery Hero accept it," reads the statement issued by the company.
With this position, Delivery Hero agrees with Uber that the integration will accelerate the development of new products and generate significant growth opportunities for the company's business.
The shareholders of the German company will be able to submit their acceptance of the offer through their banks or financial intermediaries, and the period allowed for this is expected to conclude on November 5. For the operation to succeed, a minimum acceptance level of 50% of the capital plus one share is required.
According to the proposed conditions, Uber will pay the shareholders of Delivery Hero a cash payment of 41.50 euros per share, which represents a premium of 8% over the closing price recorded yesterday for Delivery Hero shares and gives the company an equity value of 14.8 billion dollars (12.77 billion euros) for 100% of the capital.
Before announcing its takeover bid, Uber already directly controlled around 24.77% of the issued voting share capital of Delivery Hero and also had an additional economic exposure of approximately 11.74% through equity derivatives.
After the acquisition, the scope of the joint mobility and delivery platform will expand to a total of 99 markets, with estimated combined pro forma gross revenues of 236 billion dollars (206.267 billion euros) in 2025.