Deliveroo in talks over £2.7 billion buyout proposal from DoorDash
Deliveroo’s board said it received an ‘indicative proposal’ from DoorDash on April 5.
Deliveroo could be taken over by a US food delivery app in a £2.7 billion deal.
Deliveroo’s board said it is in talks with DoorDash Inc after it received an “indicative proposal” from the firm on April 5.
The board has said if there is a firm offer of £1.80 per share “it would be minded to recommend” the deal to Deliveroo shareholders, provided there was agreement on other terms.
In a statement released with DoorDash’s consent, it added: “Accordingly, the board of Deliveroo decided to engage in discussions with DoorDash in relation to the possible offer and has provided DoorDash with access to due diligence.
“There can be no certainty that any firm offer for Deliveroo will be made.
“At this time, shareholders are advised to take no action in respect of the possible offer.”
DoorDash will need to make a firm offer by May 23.
Deliveroo, which was co-founded by chief executive Will Shu in 2013, operates in nine countries and works with about 135,000 riders across the world.
Doordash, which was founded in 2013, describes itself as a “technology company that connects consumers with their favourite local businesses in more than 30 countries across the globe.”
It bought Finnish rival Wolt in an all-share deal worth 8.0 billion US dollars (£6.3 billion) in 2021.