Uber adds to stake in Germany's Delivery Hero, becomes biggest shareholder

By Emanuele Berro

May 18 (Reuters) - Uber has ‌more than ​doubled its ​stake in Germany's Delivery Hero, becoming the largest shareholder, according to a company announcement and LSEG data on Monday.

Delivery Hero said ‌its rival had increased its holding to about 19.5% of issued ⁠capital from roughly 7%. Uber's stake is worth around 1.7 billion euros, according to Reuters calculations.

"Delivery ‌Hero welcomes Uber's additional investment ‌as a further endorsement of its platform and Everyday App strategy," the company said in a statement.

The U.S.-based ride share app also has options for ​a further 5.6% of the shares, Delivery Hero said. This could give Uber a blocking minority.

Uber, which offers delivery service in Germany in competition ⁠with Delivery Hero, said in a regulatory filing it does not currently intend to increase its stake ​to 30%, a move that would trigger a mandatory offer to the remaining shareholders.

Uber declined to comment beyond its regulatory filing.

Shares ​in Delivery Hero closed 5.6% higher following ‌the announcement.

"While Uber’s ultimate intentions on further stake-building remain unclear, we view the move as a clear endorsement of the strategic ⁠attractiveness of Delivery Hero’s asset base for Uber," JPMorgan analysts said.

INVESTOR BATTLE HEATS UP

The Berlin-based food-delivery company has seen trading volume in its shares increase as former majority ⁠shareholder Prosus has sought to comply with European Commission conditions for Prosus' acquisition of Just Eat Takeaway.

The ​commission required the company to cut its Delivery Hero stake to below 10% by late summer to address competition concerns.

Uber bought a 4.5% stake in Delivery Hero from Prosus ‌in April.

Activist investor Aspex Management also raised its stake to about 15% in May as part of a campaign against ‌the company's chief executive, Niklas Oestberg. In March, Aspex urged him to resign and ⁠pushed for a strategic overhaul ‌at Delivery Hero, including a ​withdrawal from entire regions.

Delivery Hero's annual general meeting is scheduled for June 23.

(Reporting by Emanuele Berro; Editing by Rachel More and ‌Cynthia Osterman)

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