Delivery Hero Holder Aspex Tells CEO to Sell Units or Leave

Core Viewpoint - Aspex Management, Delivery Hero's second-largest shareholder, is pressuring the company to sell non-core assets or face potential management changes [1][4]. Group 1: Shareholder Pressure - Aspex Management holds approximately 9.2% of Delivery Hero's stock and is advocating for the sale of assets that do not align with the company's core operations [2]. - The letter from Aspex indicates skepticism among shareholders regarding the urgency and seriousness of Delivery Hero's strategic review [4]. Group 2: Financial Performance and Strategic Review - Delivery Hero is currently evaluating options to improve its finances and operations amid increasing consolidation in the food delivery industry, which operates on thin margins [3]. - The company has seen its shares decline nearly 33% over the past year, resulting in a market value of about €5 billion ($5.8 billion) [4]. Group 3: Geographic Footprint and Profitability - Aspex argues that Delivery Hero's profitability is lower than its peers due to its operations in over 70 countries, suggesting that the company should focus on fewer markets to optimize profitability [6][7]. - The expansive geographic footprint has led to significant legal provisions and contingent liabilities exceeding €1.4 billion [7]. Group 4: Management's Response - Delivery Hero's CEO, Niklas Östberg, acknowledged the dialogue with shareholders and emphasized the company's commitment to unlocking shareholder value while evaluating all strategic options with JPMorgan as advisers [5].