kassa! schreef op 19 februari 2022 14:18:
UK-based fund manager Sean Peche over Prosus investering in Delivery Hero
This really is what brought this company to my attention because as I said, we don’t own shares in Naspers and we don’t own shares in Prosus. But every day in our morning meeting, we just have a quick look at what the worst and best performers were the previous day. Delivery Hero was the worst performer in the world index one day and the next it was in the bottom 10. So, I wondered whether Prosus had bought some shares in Delivery Hero. I had a look on Bloomberg and they bought 27 million shares last year, with the last tranche bought in October. It cost them €3bn. In fact, they were so keen on this company that they applied to the regulators so they could increase its holding above 25. Now, the other day Delivery Hero issued a trading update, and we are talking to the period end-December, bearing in mind they bought in October. The market was so disillusioned, the stock dropped 40% in two days and is now down 60% on its investment last year, with a R31bn loss. This is value destruction on a monumental scale and they are supposed to understand this business. You’ll recall they tried to buy Just Eat in 2019 for around £5bn. Let’s remember, in 2020, when we were all sitting at home ordering takeaways because we couldn’t go to restaurants, Delivery Hero lost €1.4bn. And now there is more competition, there are more apps and you can go out. It just puzzled me what the interest is in this food delivery.
I just cannot believe people delivering burgers on bikes is somehow technology. It wasn’t a surprise to me; I find it staggering that it was a surprise to Prosus and I didn’t have a €3bn bet on this thing.