Delivery Hero "We downgrade to Neutral following Uber's proposal to acquire..."

Research evidence excerpt

Delivery Hero "We downgrade to Neutral following Uber's proposal to acquire..."

2) the EC’s focus on preserving

12/26E (0.55) (0.55) NM (1.23)

future competition could raise concerns that the transaction may constrain competitive

12/27E 0.03 0.03 0 (0.31)

expansion and market dynamics in Europe.

12/28E 1.05 1.05 0 0.88

Interloper unlikely Jo Barnet-Lamb

With Uber already owning 24.99% of Delivery Hero and holding a further 11.84% via Analyst

joseph.barnet-lamb@ubs.comswaps, we believe no third party could realistically acquire the entire company, as

+44-20-7567 4599

securing the >75% ownership required for a domination agreement and full integration

would be highly challenging. One previous upside scenario was that DoorDash or Casey McEntee

another player could make a bid for key assets, such as Talabat which would potentially Associate Analyst

casey.mcentee@ubs.com

favour a break-up over a full sale. However, with the board now backing the transaction,

+44-20-7568 3964

such an outcome appears unlikely. In our view, €41.5 per share with completion in

2H27, in line with Uber management’s guidance, represents the most probable Yulia Kazakovtseva

scenario, albeit we wouldn't rule out some shareholders choosing not to tender in an Analyst

yulia.kazakovtseva@ubs.com

effort to try to extract better terms.

+44-20-7901 5507

Valuation: we cut our price target to €41.5 (€45.0 previously)

We align our 12-month price target with the offer price and think this is the price the

market will now use as the most accurate benchmark (unless other bidders show up; we

note previous interest from DASH); the change represents an 8% cut to our price target.

Highlights (€m) 12/23 12/24 12/25 12/26E 12/27E 12/28E 12/29E 12/30E

Revenues 9,942 12,295 14,060 15,687 17,948 20,401 22,975 25,620