However, the company is required to sell its stake in food delivery app Yogiyo.
Germany-based Delivery Hero is expecting to receive conditional regulatory approval from the Korea Fair Trade Commission (KFTC) for its partnership with South Korean online food delivery platform Woowa Brothers by Q1 2021, according to a press release.
The transaction includes the establishment of a joint venture in Singapore. The transaction agreements were signed on 13 December 2019, and the transaction has since been under review by the KFTC.
The consideration consists of both a cash and an equity component of about $2.08b (€1.7b) and 40 million in Delivery Hero shares. This corresponded to US$4b (€3.6b), on a cash and debt-free basis.
However, the regulatory approval requires Delivery Hero to divest 100% of Delivery Hero Korea, including food delivery app Yogiyo. The timeframe given for the divestment is six months from the date of which Delivery Hero will receive the written decision.
The Singapore-based joint venture is expected to manage the operations of Delivery Hero in Asia through the foodpanda brand in Bangladesh, Cambodia, Hong Kong, Japan, Laos, Malaysia, Myanmar, Pakistan, Philippines, Singapore, Taiwan, and Thailand; and of Woowa's regional entities in Korea, Vietnam, and Japan.
Bongjin Kim, CEO & founder of Woowa, will be appointed as chairman of the board and executive director of the joint venture. Jakob Angele, current CEO of foodpanda Asia, and Sean Oh, current CFO/CSO of Woowa, will both be appointed co-CEOs of the joint venture.
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