Delivery Hero SE is exploring a sale of Woowa Brothers Corp., the operator of South Korea’s top food-delivery app, in a deal that could value the unit at approximately $5.8 billion.
The Berlin-based delivery giant has reportedly tapped J.P. Morgan to manage the sale and has begun reaching out to potential suitors, including global private equity firms and major strategic buyers. Naver Corp., South Korea’s dominant search engine and e-commerce player, is said to be among those that have received a teaser letter regarding the offering.
Delivery Hero’s asking price represents a significant premium over the $4 billion valuation it paid in 2019 to acquire an 87% stake in the company. Industry observers expect the high price tag could draw interest from cash-rich Chinese platform companies looking to expand their footprint in the South Korean market.
A spokesperson for Delivery Hero declined to confirm specific details of a sale but noted that the company is “conducting a comprehensive strategic review of its portfolio, capital allocation, and cost structure,” as previously outlined in a December letter to shareholders.
The move comes as the company pivots toward profitability and liquidity. In March, Delivery Hero sold its Foodpanda business in Taiwan to Singapore’s Grab Holdings Ltd., signaling a retreat from certain markets to stabilize its balance sheet.
Selling Woowa Brothers, the market leader known as Baedal Minjok, would mark a major shift in the competitive landscape of the world’s most advanced delivery economy. Analysts suggest that while the unit remains highly profitable, Delivery Hero may be prioritizing debt reduction and cash preservation over long-term growth in the region.
