Alphabiz - Delivery Hero Explores Sale of Woowa Brothers, Seeks Up to KRW 8 Trillion

[Alpha Biz= Kim Jisun] Delivery Hero is reportedly exploring the sale of Woowa Brothers, the operator of South Korea’s leading food delivery app Baedal Minjok, as part of a broader strategic review.

According to industry sources on May 13, Delivery Hero has appointed JPMorgan Chase as the lead advisor and has begun sounding out interest from domestic conglomerates and global private equity firms.

Naver is also said to have received a teaser letter containing key investment information.

Delivery Hero is reportedly seeking a valuation of around KRW 8 trillion. The company acquired an 87% stake in Woowa Brothers in 2019 for approximately USD 4 billion (about KRW 4.75 trillion at the time).

Given the sizable deal value, market observers say Chinese platform companies could also emerge as potential bidders.

In response to inquiries, Delivery Hero stated that it is conducting a comprehensive strategic review of its portfolio, capital allocation, and cost structure, as outlined in its shareholder letter released in December last year.

The company has been pursuing liquidity measures, including the sale of its Taiwan Foodpanda business to Singapore-based mobility platform Grab in March.

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)