Naspers buys half of Rocket’s stake in Delivery Hero

JOHANNESBURG: South African media firm Naspers increased its investment in online food takeaway firm Delivery Hero, buying half the stake of e-commerce investor Rocket Internet for 660 million euros.

The move comes as Rocket Internet, which built up and invested in dozens of businesses from fashion e-commerce to food delivery, tries to optimise its portfolio after its share price has performed poorly since it listed in 2014.

Naspers first took a stake in Delivery Hero in May when the German firm issued new shares a month before it went public.

Yesterday, Rocket said it was selling half its 26% stake to Naspers.

The move takes Naspers’ stake in Delivery Hero to 23.6%. Naspers chief executive Bob van Dijk said the investment underlined his confidence in the firm’s prospects, particularly in developing markets.

“Many markets have experienced signifi- cant traction already, but we believe the potential is far greater in high-growth markets than that observed in the West,” he said in a statement. Rocket Internet shares were up 1.4% by 0709 GMT, while Delivery Hero was down 0.6%. Delivery Hero, the world’s largest online takeaway food delivery company, reported a 66% jump in first-half revenue and sharply narrower losses on Wednesday, after slightly slowing its expansion with a focus on breaking even in 2018.