Deliveroo suspends share buyback as considers Doordash approach
Deliveroo PLC on Monday said it is suspending its £100 million share buyback programme, following a US takeover approach.
The London-based food delivery firm after the market close on Friday disclosed it had received an indicative proposal from San Francisco-based peer DoorDash Inc regarding a possible cash offer.
The proposal on April 5 was for a cash offer of 180 pence per Deliveroo share, valuing the company at around £2.7 billion. Its shares had closed at 124.80p each on April 4, meaning the offer was for a 44% premium.
Deliveroo shares were up 16% to 169.70 pence each on Monday morning in London, giving it a market capitalisation of £2.53 billion.
DoorDash shares closed 0.3% higher at $187.76 each on Friday in New York, for a market capitalisation of $78.88 billion.
Deliveroo said that it would be ‘minded to recommend such an offer to Deliveroo shareholders, subject to the agreement of the other terms’ if a firm offer was made.
Deliveroo said it has decided to engage with DoorDash regarding the offer and has provided access to due diligence.
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