According to sources close to the matter, Delivery Hero, a German online food delivery service has agreed to purchase Woowa Brothers, a South Korean food delivery service for a whopping $4 billion.
According to the source, the German food delivery company would purchase 87% of the company from its existing shareholders and investors. The rest of the stake that belongs to Kim Bong-jin, the founder and its senior management would be directly converted into Delivery Hero shares.
The deal would make Kim the largest shareholder in the German company. He would also join its board as a global advisor. The German company is also looking to get into Singapore by setting a joint venture with Woowa. Kim would be actively taking part in managing the business in Asia, according to the source.
The source also stated the two food delivery companies would make an announcement by Friday.
GIC Pte., Hillhouse Capital and Sequoia Capital are the major shareholders in the South Korean food delivery startup.