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Earnings

Delivery Hero raises 1.2 billion euros with capital increase

FILE PHOTO: The Delivery Hero's logo is pictured at its headquarters in Berlin, Germany, August 18, 2020. REUTERS/Fabrizio Bensch

(Reuters) - Delivery Hero raised around 1.2 billion euros ($1.48 billion) by issuing new shares to fund growth, the German online takeaway food company said on Wednesday.

Delivery Hero sold 9.44 million new shares to institutional investors, increasing its current share capital by around 4.7%, the $34-billion Berlin-based company said.

The placement price of 132.00 euros per share represented a 4.6% discount to the stock’s closing price of 138.35 euros on Wednesday, sending shares down 2.3% in Lang & Schwarz pre-market trade.

Shares in Delivery Hero, which was promoted to Germany’s blue-chip stock index in August, reached an all-time high on Tuesday, as strict social distancing rules and work-from-home trends to curb the spread of the coronavirus have increased demand for home deliveries of food and other basic items, making Delivery Hero one of the winners of the pandemic.

In late December the company announced it received regulatory approval of its $4 billion takeover of top South Korean food delivery app owner Woowa Brothers.

($1 = 0.8121 euros)

(This story corrects closing price to 138.35 not 138.50, paragraph 3)

Reporting by Linda Pasquini; Editing by Maria Sheahan

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