Delivery Hero Gets Regulatory Approval In South Korea For JV With Woowa Brothers

(RTTNews) - Delivery Hero SE (DHER.DE DLVHF.OB) Wednesday announced that the Korea Fair Trade Commission has approved its joint venture with Woowa Brothers Corp., the operator of South Korea's largest food delivery platform.

The approval is subject the divestiture of Delivery Hero's 100% South-Korean subsidiary Delivery Hero Korea LLC. and the maintenance of the status quo of Yogiyo until the completion of its divestiture. The objective is to close the transaction during March 2021.

Delivery Hero had announced the purchase of shares in and the establishment of a joint venture with the management of Woowa on December 13, 2019. The transaction valued Woowa on a cash free and debt free basis at $4.0 billion before certain adjustments.

The consideration was agreed to consist of up to about 1.7 billion euros in cash and up to approximately 1.9 billion euros in new shares in Delivery Hero.

Delivery Hero said it will likely have to recognize a significant impairment loss due to the increased price of its share price since the signing of the transaction back in December 2019 and until the approval by the Korean Fair Trade Commission.