Delivery Hero (DHER.DE) CEO Niklas Oestberg has failed to prove his stockpicking abilities. The 5.4 billion euro food delivery company said on Monday it has sold its 4.5% stake in British rival Deliveroo (ROO.L) at 1.13 pounds per share, raising some 77 million pounds, or 90 million euros. The move triggered an 8% fall in Delivery Hero shares in Frankfurt on Tuesday, erasing about 400 million euros from the company’s market value.
The market reaction is unsurprising. By exiting Deliveroo now, Oestberg is signalling a potential loss of confidence in the whole segment. But the move also raises questions about the executive’s financial acumen. Monday’s sale price is nearly 60% below the 2.70 pounds he had paid on average for the shares.
The negative return confirmed to investors Delivery Hero’s initial investment was a bad distraction while the company remains deeply unprofitable. The group is only expected to turn a net profit in 2026, according to LSEG data. And its shares are trading at their lowest level since its initial public offering and have fallen 60% from a year ago. Oestberg should better concentrate on getting his meals company in shape. (By Karen Kwok)
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(The author is a Reuters Breakingviews columnist. The opinions expressed are their own.)
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