Is foodpanda Getting Sold Off In Malaysia & Southeast Asia? Its Parent Company Says No
Delivery Hero's CEO says he's more than happy to hold onto foodpanda forever.
By Tharshini Skovalan — 17 Feb 2024, 03:03 PM
Last year, Delivery Hero announced plans to sell part of its Southeast Asian food delivery business
The company planned to sell its foodpanda business in Singapore, Malaysia, the Philippines, Thailand, Cambodia, Myanmar, and Laos due to declining growth following the lifting of COVID-19 lockdowns.
However, it seems those plans are being put on hold, with the German company retaining ownership of the foodpanda brand, at least for now.
Delivery Hero chief executive officer Niklas Ostberg recently said he is happy to keep foodpanda in Southeast Asia under Delivery Hero's umbrella
"I'm more than happy to hold onto it forever. The business has turned breakeven now, [and] that's good [that] it's not a drag on our profitability anymore, that's nice," Ostberg told CNBC in an interview on Wednesday, 14 February.
A report by CNBC suggests that this means he's confident in remaining committed to the business and doesn't feel an urgent need to sell it.
This update from Ostberg comes after Delivery Hero refuted rumours about failed sales negotiations earlier this month
According to the rumours, negotiation talks for the potential sale of the business had fallen through, as reported by the New Straits Times.
After the rumours caused a sharp drop in stocks, a company representative released a statement clarifying that selling foodpanda was an option that was still on the table. The statement did not name any buyers, but said that talks were still ongoing.
Despite the recent update, Delivery Hero may still consider selling foodpanda in the future
Ostberg clarified that the company is still open to potential buyers and would consider offers that exceed foodpanda's long-term value.
"[foodpanda] will be one of our faster-growing regions. There's still so much growth potential there, [and] we very much like the asset. I guess we always have to act rational towards investors if someone offers a price that is higher than what we think we can generate for it over the years.
"By no means are we forced to sell, we are not building a business to sell it, we are building a business because we love a good service. We believe we can generate good return for our shareholders there. We still have to act rational if someone offers a price that we feel is good value," he said, as quoted by CNBC.
