Deliveroo shares jump 18% on £2.7b DoorDash bid
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The news: Shares in food delivery app Deliveroo surged on Monday on news that the app had received an acquisition offer from DoorDash.
The numbers: Deliveroo said in a filing on Friday that it had received a cash offer from DoorDash at £1.80 ($3.75) per Deliveroo share, which would value the company at around £2.7 billion.
The context: Deliveroo’s statement says that should a firm offer be made by DoorDash on the financial terms set out above, it would be minded to recommend such an offer to Deliveroo shareholders, subject to the agreement of the other terms of the offer.
Despite trading at around 172 pence per share on Monday morning in London, Deliveroo is still trading at around 5% below its indicative valuation from DoorDash.
Should the sale go ahead, chief executive Will Shu, who has a 6.4% stake in Deliveroo, could pocket up to £170 million in the deal.
Analysts from Panmure Liberum told Bloomberg that Deliveroo may draw interest from other buyers, including Amazon, which already holds around 14% of Deliveroo stock. Under the UK’s ‘put up or shut up’ rules, DoorDash must make an offer by 23 May or walk away.
Deliveroo also said on Monday that it would suspend its £100 million Buyback Programme announced on 18 March 2025 following receipt of the DoorDash proposal.
Earlier this year, Prosus NV agreed to buy Deliveroo rival Just Eat Takeaway for €4.1 billion.
The sources: Deliveroo statement, Bloomberg
