May 09, 2025 | Consumer Discretionary | Europe | Active
Ahead of a “put-up or shut-up” (“PUSU”) deadline, on 6-May-25, DoorDash and Deliveroo jointly announced a definitive agreement whereby DoorDash will acquire Deliveroo for £2.9bn, offering target shareholders 180p per share in cash. The deal is structured as a court-sanctioned scheme of arrangement and has been deemed as final; the consideration will not be increased unless a competing proposal emerges. DoorDash retains the right to reduce the offer price should Deliveroo declare a dividend with a record date before completion. The initial indicative proposal that triggered the PUSU was confirmed on 25-Apr-25 by Deliveroo, after the UK market close and at the same price, and the bid represents a 22.8% premium to Deliveroo’s undisturbed price on 25-Apr-25. Deliveroo’s board had indicated that it would be minded to recommend a firm offer on the original terms. The scheme requires approval by 75% in value of voting shareholders at the Court Meeting and a simple majority at an EGM. Deliveroo’s independent directors have unanimously recommended the deal as “fair and reasonable,” and Deliveroo CEO Will Shu and other directors holding 6.5% of the company’s share capital have entered into irrevocable undertakings to vote in favour of the scheme. DoorDash secured additional irrevocable commitments from DST Global (5.4%) and Greenoaks Capital (3.5%), bringing the total support to 15.4% of Deliveroo’s issued share capital. Critically, however, Amazon.com (AMZN US, 14.4% stake), has neither ...
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