Delivery Hero to Raise up to $1.5 Billion in Convertible Bonds

Delivery Hero Plans to Raise Up to $1.5 Billion Through Convertible Bonds

BERLIN (Reuters) – Delivery Hero is issuing convertible bonds worth up to 1.25 billion euros ($1.48 billion) to allow the German online food delivery company to take advantage of possible investment opportunities, it said on Thursday.

The dual tranche bonds due 2026 and 2029, which will be issued on or around Sept. 10, will be converted into newly issued shares.

The loss-making company said last month it was not considering making an offer for its British rival Deliveroo, days after the German company acquired a 5.09% stake in the London-listed online food delivery company.

Delivery Hero cannot bid for Deliveroo for six months, according to British takeover rules, but the Frankfurt-listed company said it could choose to make an offer with the agreement of Deliveroo’s board and under some other circumstances.

Founded in 2011, Delivery Hero operates in about 50 countries, with particular strength in Asia, where it owns the Foodpanda brand. However, it does not operate in Britain, which is Deliveroo’s largest market.

($1 = 0.8427 euros)

(Reporting by Emma Thomasson; Editing by David Gregorio)