Uber's Delivery Hero stake boosted by Prosus' $318 million share sale

April 17 (Reuters) - Dutch technology investor Prosus PRX.AS has agreed to sell a 4.5% stake in Delivery Hero DHER.DE to Uber UBER.N for about 270 million euros ($318.06 million), making the ride-hailing group the fourth-largest shareholder in the Berlin-based food-delivery group.

The sale advances Prosus' compliance with conditions set by the European Commission for its acquisition of Just Eat Takeaway, which required the company to cut its Delivery Hero stake to address food delivery competition concerns.

The deal, announced on Friday, makes Uber the fourth largest Delivery Hero shareholder with a stake worth more than $600 million, according to Reuters calculations and LSEG data.

"Uber's increased position is a meaningful endorsement of our platform, our strategy, and our ongoing work to deliver long-term value for all shareholders," said Delivery Hero CEO Niklas Oestberg in a statement.

Delivery Hero's shares were up 2.9% at 0808 GMT and are up 22% so far this week. They have lost over a fifth of their value from the beginning of 2025.

The acquisition comes as Uber is expanding aggressively in Europe, with plans to launch food-delivery services in markets including Austria, Czech Republic, Denmark, Greece, and Romania, targeting an additional $1 billion in gross bookings over three years.

NOT A 'PRELUDE TO A DH TAKEOVER'

"We wouldn't rush into seeing this as a prelude to a DH takeover," analysts at Jefferies wrote in a note to clients. They highlighted a greater market overlap between the two groups in Europe than between Delivery Hero and Prosus' Just Eat Takeaway.

In March 2025, Uber terminated an agreement to buy Delivery Hero's Foodpanda business in Taiwan after Taiwan blocked the $950 million deal because of competition concerns.

A separate agreement for Uber to buy $300 million worth of newly issued Delivery Hero shares was not affected by the termination of the Foodpanda deal.

Prosus said on Friday it is selling 13.6 million Delivery Hero shares at 20 euros each, reducing its stake to 21.8% from 26.3%.

"We are baffled by Prosus' actions here," Jefferies analysts also said, given the low strike price, lack of imminent pressure to sell and EU plans to relax merger rules.

Prosus is looking to reduce its Delivery Hero stake to single digits.

($1 = 0.8489 euros)