Glovo passes into the hands of Delivery Hero for less than half the agreed value

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It’s official, Glovo has passed into the hands of Delivery Hero after the shareholders’ meeting approved the transaction this Monday. An operation that, for the moment, is being quite ruinous for all those who had shares in the Spanish company, since in just six months they have seen how the value agreed for the sale was reduced by more than half without being able to do anything. to remedy it.

Why? Delivery Hero agreed to purchase Glovo last January in an operation valued at 2,300 million euros, an amount that would not be paid in money, but in a number of fixed shares of the German company for each share of the Spanish company. That figure was established taking as a reference the price that the Teuton titles had at that time, about 98 euros, a value that has now fallen to 35 euros.

In this way, in just six months, the shareholders of Glovo have seen how the value of the securities that they were going to receive as payment for their shares in the Spanish startup fell by more than half of what was agreed. This setback would have occurred, as explained by El Confidencialbecause a minimum sale price clause was not included in the purchase agreement to protect sellers from a possible collapse of the shares of Delivery Hero.

Now, the shareholders of Glovo will have to decide whether to sell their new shares in the Teutonic food delivery company downwards or wait for the situation to improve to get closer to the January figures.

New owners, same address. In this way, Glovo becomes part of the German giant of food deliverybut it will not change substantially, since it will maintain its brand, its own platform and will continue to be managed by its two founders, Oscar Pierre and Sacha Michaud, who remain Glovo shareholders with approximately 6% of the shares.

Difficulties. The drop in shares of Delivery Hero, of approximately 65%, has not been the only obstacle that the operation has faced in these six months. In order for the Government of Spain to give its authorization to the transaction, the Germans have had to commit in writing that they will comply with the Rider Law, something that Glovo has not done to date.

On the other hand, Delivery Hero also had to take the hit from a harsh report of the British bank HSBC in which the purchase of Glovo was described as bizarre and without much business sense, especially due to the financial situation of the Spanish, who have been in the red for years and are only sustained by continuous rounds of financing. In fact, in 2021 they lost 475 million euros and they have already anticipated that this 2022 will have operating losses of 330 million euros.

Image | PhilippeCPhoto

It’s official, Glovo has passed into the hands of Delivery Hero after the shareholders’ meeting approved the transaction this Monday.…

It’s official, Glovo has passed into the hands of Delivery Hero after the shareholders’ meeting approved the transaction this Monday.…

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