Home / Business and Economy / Delivery Hero Faces Management Ouster Threat
Delivery Hero Faces Management Ouster Threat
13 Mar
Summary
- Shareholder Aspex threatens management replacement if assets aren't sold.
- Aspex criticizes Delivery Hero's broad geographic footprint for low profitability.
- A significant €1.4 billion in legal provisions creates unacceptable risk.
Delivery Hero SE's management is under intense pressure from its second-largest shareholder, Aspex Management. Aspex, holding about 9.2% of the company's shares, has explicitly stated its intention to seek a leadership change if the company fails to divest certain assets.
In a letter to CEO Niklas Östberg, Aspex argued that only significant divestitures, not just single-country sales or minority stakes, would suffice. The investor expressed broad shareholder skepticism regarding the urgency and seriousness of Delivery Hero's ongoing strategic review, urging a credible reset to crystallize value.
Aspex further contended that Delivery Hero's profitability lags behind competitors due to its expansive operations in over 70 countries. This wide geographic footprint, they stated, has resulted in a concerning build-up of over €1.4 billion in legal provisions and contingent liabilities, exposing the business to unacceptable risk.
Delivery Hero acknowledged the shareholder dialogue and shared the commitment to unlocking value. CEO Östberg confirmed that the company is evaluating all strategic options with advisors, emphasizing that recent share price performance does not reflect the business's true performance.
