For further growth, the online delivery service Delivery Hero has raised more than one billion euros in fresh money by issuing convertible bonds.
A first tranche of more than 750 million euros will yield 1.0 percent interest, the coupon of a second tranche of over 500 million euros is 2.125 percent, as the Dax group announced on Thursday evening.
The company announced the plan shortly after the stock market closed.
The interest rate is thus at the upper end of the concept of delivery hero management.
The issue of the convertible bonds, which in the medium term could lead to a higher number of shares and thus to a dilution from the perspective of the existing shareholders, put pressure on the price. The papers gave way on Friday in the course of trading around 2 percent to about 129 euros and were thus at the end of the Dax. However, the price had risen by almost 10 percent within a week. On Thursday, the shares in Xetra trading had climbed to just under 135 euros, the highest level since the end of April.
The group is nevertheless using the currently still very attractive low interest rate environment to obtain cheap money, while some central banks are already thinking about a slight tightening of monetary policy.
That would then probably increase the financing costs for companies, even if it might take months before that happens.
Change in the years 2024 and 2025
The convertible bonds run until 2026 and 2029, respectively. However, the company can convert them into shares from September 30, 2024 (first tranche) and from September 30, 2025 (second tranche) under certain conditions.
The initial conversion price for both tranches should be EUR 183.12, which corresponds to a premium of 40 percent on the reference price.
The management wants to use the fresh money from the bond sale "for general corporate purposes" and - when the opportunity arises - to invest in growth. Jefferies' analyst Giles Thorne commented in an initial response that given the diverse nature of the industry and the scope of Delivery Hero's activities, there are many uses for the new money.
What is certain, however, is that Delivery Hero has so far mastered how to exploit the increased market value and thus keep pace with the competition in terms of capital resources. Thorne left his price target at 180 euros with a buy recommendation. There has recently been speculation that Delivery Hero is about to join the delivery service startup Gorillas for around 200 million euros. Another 200 to 400 million euros should be invested later.
The Dax group is currently working on the completion of the takeover of the South Korean delivery service Woowa and the integration of the acquired company. This is where the decisive progress was made recently. So the Dax group found a buyer for its own South Korea subsidiary Yogiyo. The Korean authorities had made the separation from the division a prerequisite for Woowa to be allowed to be taken over.