Delivery Hero acquires Foodpanda as Rocket Internet shuffles online takeout pack once again
Rocket Internet has shuffled the online takeout pack of cards once again. This time the publicly-listed German ‘startup factory’ and investor is selling foodpanda to its much larger rival Delivery Hero, of which it also holds a significant stake. A move that should help fatten up Delivery Hero a little more for a long-rumoured planned IPO of its own. Terms of the acquisition remain undisclosed.
What we do know, however, is that the acquisition of foodpanda will be funded through the issuance of new shares in Delivery Hero to existing foodpanda shareholders. As a result, Rocket Internet will increase its ownership in Delivery Hero to 37.7 per cent on a fully diluted basis post transaction. The transaction is subject to customary closing conditions and is expected to close prior to December 31, 2016.
Meanwhile, Delivery Hero, which was most recently valued at $3.1 billion and competes directly with publicly-listed Just Eat, along with newer premium entrants such as Deliveroo, Uber Eats and Amazon, says the acquisition strengthens its “global leadership position” in online food ordering and delivery. The combined group is expected to process over 20 million orders per month across 47 countries.
Specifically, foodpanda will add 20 new countries in Eastern Europe, MENA and Asia to Delivery Hero’s platform. It currently processes approximately 2 million monthly orders across the 22 countries it operates in, claiming to be the market leader in 17 of them. In addition, Delivery Hero says foodpanda will enable it to consolidate its market leadership position in the Middle East.
Both Delivery Hero and foodpanda are headquartered in Berlin and began life very much as rivals, but over the last couple of years — and given Rocket Internet’s slightly peculiar stakes in both companies — have morphed into frenemies of sorts.
This has seen multiple local properties swap hands, perhaps in recognition that the takeout aggregator space is increasingly a winner takes all market where competing hard can be costly in terms of customer acquisition and retention. Today’s full purchase of foodpanda by Delivery Hero brings that strategy to its ultimate conclusion.
For Vodafone, Being No. 2 Could Be Best - http://on.wsj.com/2gmyqsT
Mobile carrier aims to be one of two ‘premium’ players—it doesn’t matter which—in each of its 26 countries
LONDON—Telecommunications giant Vodafone Group PLC has a mantra: Be No. 1.
Or No. 2.
U.K.-based Vodafone, the world’s second-biggest mobile carrier by subscribers, is trying to keep that position by having the most—or second-most—customers in each of its 26 countries.
“It’s not really about being the leader,” Chief Executive Vittorio Colao told analysts last month. Vodafone believes the top two players in telecom markets—and it doesn’t matter if they are first or second—are able to differentiate themselves through superior networks and services. By focusing investments in these two areas, the leading operators can justify higher prices.
“The gap versus No. 3s is not only stable, but even increasing,” Mr. Colao said, adding “it’s about really creating a two-tier market.”
Even after a $130 billion windfall from the 2014 sale of its Verizon Wireless stake, Vodafone has so far eschewed big, global expansion. Under Mr. Colao, a 55-year-old Italian reserve military officer who took over as CEO in 2008, the company left the consumer U.S. market and has plowed investment into Europe and the developing world instead.
Vodafone’s biggest competitors are typically formerly state-owned fixed-line giants still catching up in the mobile age. It earned £41 billion ($50 billion) in revenue for the last full fiscal year and ranks below only China Mobile Ltd. in terms of global subscribers.
Over two years, Mr. Colao spent about $24 billion across his empire, which is concentrated in Europe, Africa and India, to expand high-speed mobile networks, the pillar of its marketing campaigns. Vodafone also spent about $20 billion in 2013 and 2014 to buy major cable operators in Germany and Spain, and it is expanding its wired cable and internet network so it can sell the telecom industry’s Holy Grail: a “quad-play” package that offers mobile, landline telephone, cable and internet services on one bill.
The results so far are mixed: Vodafone said last month that its plan was paying off in parts of Europe, but proving much more expensive than anticipated in India.
Overall, Vodafone’s organic revenue, which excludes foreign-exchange movement, grew 2.2% in the third quarter of 2016, outperforming the average 1.6% growth of major Europe-based telecom firms, according to Raymond James analyst Stephane Beyazian.
Leading the way over the past six months was Germany, with 2.3% organic growth, and Italy, at 1.7%. But Vodafone’s organic revenue declined 2.7% in its home market of the U.K.—where it is the No. 3 mobile operator behind BT Group PLC, which operates the EE brand, and Telefónica SA’s O2. Mr. Colao blames the shortfall partly on billing problems and customer-service complaints related to a new computer system.
Even more costly has been defending its No. 2 status in India. New mobile carrier Reliance Jio Infocomm Ltd., funded by India’s richest man, has offered free service for at least a month to get new customers. Vodafone wrote down the value of its India business by €5 billion ($5.3 billion) earlier this month, citing the competition.
“It is very hard to compete with someone who gives stuff for free,” Mr. Colao said.
Vodafone was formed in Newbury, England, in 1984 and spun off from military and electronics conglomerate Racal Electronics Group in 1991. It was one of the world’s first mobile-focused telecom companies, and obtained licenses in a hodgepodge of countries early in the cellphone era and via two big deals.
It merged with AirTouch Communications, a San Francisco-based mobile carrier with world-wide holdings, in 1999. The next year, it acquired Mannesmann AG, a German telecommunications business with European operations.
In 1999, Vodafone merged its U.S. mobile operations with those of Bell AtlanticCorp., with the latter renaming itself Verizon Communications Inc. They called their joint venture Verizon Wireless, with Verizon owning 55% and Vodafone the other 45%. Verizon Communications had long tried to buy out Vodafone’s shares, but the two didn’t reach an agreement until 2013. The sale closed in 2014.
Vodafone gave back $84 billion from the sale to shareholders—the largest single return in modern corporate history. A chunk of the remainder went to pay taxes and reduce debt.
The rest of those funds helped bankroll Vodafone’s two-year network-improvement program. The project, which mostly wrapped up this past spring, focused on expanding Vodafone’s fourth-generation mobile network, or 4G, in Europe and both its fourth- and third-generation networks in emerging markets such as India.
For years, Vodafone and John Malone’s Liberty Global PLC have publicly flirted with the idea of a combination. The two companies expect to complete a merger of their operations in the Netherlands later this year, creating a 50-50 joint venture. Speaking at a Morgan Stanley conference last month, Mr. Colao and Liberty Global CEO Mike Fries said the Dutch tie-up wasn’t necessarily indicative of future deals. But Mr. Colao kept the door open.
“We see the world the same way,” Mr. Colao told investors, describing Mr. Fries. “Is this the first trial of something bigger? Not necessarily.…But of course it helps to know each other.”
ENI exploring interest in selling ENI Gas & Power NV - http://bit.ly/2hah9ak
The Italian oil and gas company ENI [BIT:ENI] is exploring if there are parties interested in acquiring the Belgian daughter company ENI Gas & Power NV, the Belgian daily De Tijd reported. It was confirmed by Tom Vanden Borre, manager of ENI Gas & Power NV.
ENI acquired the company five years ago for EUR 157m from NUON Belgium, the report said. ENI Gas & Power is the third largest electricity and gas provider in the Flemish part of Belgium.
Tom Vanden Borre confirmed that ENI is exploring the market, but said that a decision to sell is not definitive yet.
The company employs over 200 staff.
Belgian government open to selling shares in Bpost (translated) - http://bit.ly/2gmwVLq tidj.be
The Belgian government is open to selling part of its share in Bpost, the Belgian postal company, the Belgian vice prime minister Alexander De Croo told the Belgian daily De Tijd in an interview.
The Belgian government currently has a majority share in Bpost. De Croo said it is not taboo for him to sell part of it, so that the government owns less than 50% in the company, De Tijd reported. The vice prime minister said he does not know if Bpost will continue to be a state company for many more years, but he did mention that there is no need for the government to cling on to the company.
In the De Tijd interview, De Croo also responded to the failed takeover of Dutch postal company PostNL by Bpost. He criticized the Dutch government for interfering in the process and said that he thought the Dutch government would never go this far to prevent the takeover from happening. PostNL had rejected the takeover bid by Bpost on Wednesday. De Croo said he believes that a deal would have been made if the Dutch government would not have interfered, De Tijd said.
Corialis acquired by CVC Capital for almost EUR 1bn (translated)
The Belgian aluminium company Corialis has been acquired by CVC Capital for almost EUR 1bn, the Belgian daily De Standaard reported, citing Corialis CEO Johan Verstrepen.
It is the fourth time Corialis has been sold to a new owner, the report said. The previous owner, Advent, acquired Corialis three years ago for EUR 650m.
Corialis was founded 20 years ago, Johan Verstrepen told the newspaper.
Corialis expects a turnover of EUR 450m this year with a gross profit of EUR 100m, the report said.
Besides CVC Capital, Carlyle, KKR, PAI and Argost were also interested in acquiring the company, De Standaard reported.
Verstrepen said he will hold a 11% stake in the company.
GVC rumoured to have prepared reverse takeover for Ladbrokes - report
GVC [LON:GVC], the Isle of Man-based online gaming group, is said to have been planning a potential takeover of rival betting group Ladbrokes Coral [LON:LCL], the Financial Times reported. Rumours suggested GVC’s advisers were drawing up plans for a reverse takeover deal which could be worth approximately GBP 3.2bn (USD 4.0bn), equivalent to an around 30% premium, the report said.
Sources familiar with the UK betting sector said talks between the two sides may have collapsed, however, the item reported.
GVC has a GBP 1.9bn market capitalisation, the report noted.
Link to Article : http://reut.rs/2gMvsyZ
Orange Chief Executive Officer Stephane Richard said on Thursday that Orange would consider bidding for Vivendi's wholly-owned Canal Plus if it came up for sale.
The former telecoms monopoly is keen on forming a closer alliance with Canal Plus, Richard added, without elaborating.
Talks between Orange and Canal Plus so far have concerned a potential acquisition by Orange of a stake in Vivendi's pay-TV group, but no deal has been reached yet, according to two sources close to the matter.
An Orange spokeswoman declined to comment.
An alliance with Canal Plus would allow Orange to compete better against its French rival SFR Group, a subsidiary of telecoms and cable group Altice.
Altice said on Wednesday it had signed a strategic agreement with NBC Universal that provides exclusive distribution rights for the 13th Street and E! Entertainment TV channels.
SFR, whose media content also includes the English Premier League football, is betting on a combination of television content and mobile telecoms to set itself apart from competitors.
Lawyers seek to launch fresh Brexit challenge in Irish courts
A group of British and Irish lawyers are seeking to challenge Britain's decision to leave the European Union in the Irish High Court to try to establish if Brexit can be reversed once divorce talks have been triggered.
British Prime Minister Theresa May has said she wants to invoke Article 50 of the EU's Lisbon Treaty by the end of March, kicking off up to two years of exit negotiations following the vote to leave in a referendum last June.
The lawyers hope the court in Dublin will ask the European Court of Justice, the EU's highest court, to determine whether Article 50 can be revoked and also if leaving the EU means that Britain automatically leaves the European Economic Area (EEA).
The EEA is the trading club comprising the 28 EU states plus Norway, Iceland and Liechtenstein, three non-EU nations who can access the bloc's single market in return for applying its rules and accepting the free movement of EU citizens.
European Council President Donald Tusk has said that Britain might ultimately decide not to leave the EU and that if it unilaterally withdrew its request to leave before the two years were up, then it could stay in the Union.
However in the final judgment of a ruling last month that Article 50 cannot be triggered without parliament's assent, Britain's High Court said that once notice of leaving was given then it will "inevitably result in the complete withdrawal of the United Kingdom".
That challenge is now in front of Britain's Supreme Court.
The case proposed for the Dublin courts is being brought in Ireland because the lawyers say the Irish Government colluded in a breach of the EU Treaties by wrongly excluding Britain from some EU Council meetings after the referendum.
That claim can only be made in the courts of Ireland, they wrote on a crowdfunding website seeking to raise 70,000 pounds ($88,000)to initiate the proceedings. Over 30,000 pounds had been raised less than 24 hours after the appeal was launched.
The group hopes to launch proceedings in the Irish courts by the end of the year and if successful, move to the European Court of Justice within months, Jolyon Maugham, the British lawyer behind the campaign, told Irish national broadcaster RTE.
Pro-Brexit critics have cast the legal battles as an attempt by a pro-EU establishment to thwart the result of June's referendum, when Britons voted by 52-48 percent to leave the EU.
Islamic State militants enter Palmyra city after surprise assault - monitor
Islamic State militants entered the ancient city of Palmyra on Saturday in eastern Syria after advancing to its outskirts for the first time since losing the city earlier this year, a war monitor said.
The UK-based Syrian Observatory for Human rights said the militants had entered Palmyra after they had taken strategic heights near the city and captured the northern part of the city and major silos and mountains around it.