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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CONSUMER CYCLICALS
Delivery Hero (DHER GY) is currently worst-performing equity in SXXP on reports its deal to sell its SE Asian business to Grab (GRAB US) has collapsed. High risk situation.
- Foodpanda, DHER’s business headquartered in Singapore, was reported by Reuters in Sep-23 as being on the block, at a value of around EUR1bn. The plan appeared part of an effort to streamline DHER and focus on generating profitability after the post-pandemic equity price fall (down 80% from 2021 peak to 2022 low).
- DHER’s equity initially spiked after the Sep-23 deal report but has since given all of that performance back and then some.
- The credit is little traded (and unrated) but is priced as high yield – the ’26 bond (DEHEHO 1 04/30/26) is showing at 83c on screen. Following the deal news in Sep-23, the credit did tighten but, unlike the equity, has retained those levels (see graphic). FCF is still forecast to be negative for FY23 and FY24 (results are on 25-Apr) and with net debt/equity at 84% (Dec-22), this remains a high risk situation, we feel.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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