[South Africa] Prosus increases stake in Delivery Hero
Prosus, a major subsidiary of South African Naspers, has entered into an agreement to acquire an additional 2.5% stake in Delivery Hero, subject to regulatory approval, through its subsidiary, MIH Food Holdings B.V.
Prosus believes acquiring the additional stake is a sound financial investment that will afford it the ability to offset any potential future dilution which may occur in the normal course from, for example, convertible issuances, employee exercises and/or stock issuances. Prosus may increase its stake in Delivery Hero if future opportunities arise to obtain further shares at attractive terms, but Prosus has no intention of exceeding an aggregate shareholding of 29.99%.
MIH Food Holdings B.V. currently holds 24.97% of Delivery Hero, which will increase to 27.47% post receipt of regulatory approval and closing of the transaction, expected by the end of September 2021. Prosus will remain the largest shareholder in Delivery Hero.
Growing its position in online food delivery is consistent with Prosus’s strategy to invest in platforms with global potential that offer online marketplace services in high-growth markets. Delivery Hero, along with Swiggy, iFood, Wolt, Oda and Flink comprise the Food Delivery portfolio, which has a presence across 69 markets across the world.
The transaction will be funded from existing resources.