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Deliveroo is in talks over a £2.7bn takeover by a US rival in a deal that would end a turbulent four years on the London Stock Exchange.
The food delivery company on Friday said it had received a proposal from DoorDash, the $77bn US food delivery giant, to buy the British business for 180p per share.
Deliveroo, led by founder Will Shu, said the board was “minded to recommend such an offer to Deliveroo shareholders” if it received a firm offer for the business.
“Accordingly, the board of Deliveroo decided to engage in discussions with DoorDash in relation to the possible offer and has provided DoorDash with access to due diligence,” the company said. DoorDash must now make a firm offer by May 23.
The approach follows months of speculation about a US takeover of Deliveroo, which has struggled to rebuild its share price after a disastrous initial public offering.
The company was valued at £7.6bn when it floated in March 2021, but it endured what was dubbed the “worst IPO in history” as it lost a quarter of its value.
Its market capitalisation has since continued to slide to around £2.1bn after the pandemic-fuelled takeaway boom faded. Shares were valued at 146p when markets closed on Friday.
DoorDash’s takeover would net Mr Shu more than £170m, based on his current holdings.
Amazon, the company’s biggest shareholder with a 14pc stake, would be paid £387m. Mr Shu, a former Morgan Stanley investment banker, started the business in 2013 personally delivering takeaways around Canary Wharf.
Like Deliveroo, DoorDash offers takeaway deliveries via an app through a network of takeaway couriers. It is led by its founder, Tony Xu, a Chinese-American billionaire who set up the business in 2013. He is worth an estimated $2.2bn.
The loss of Deliveroo will be seen as another blow for the London Stock Exchange, which has suffered an exodus of high-profile companies and struggled to attract new listings.
In November, Just Eat Takeaway, one of Deliveroo’s biggest rivals, also delisted from the exchange after its value slumped, before confirming in February it had agreed to be taken over by South African-owned investment firm Prosus.
DoorDash’s approach could prompt scrutiny from competition regulators, who have previously investigated food delivery deals including Amazon’s decision to take a minority stake in Deliveroo in 2020.
Doordash also owns Wolt, a European food delivery company, although it has little crossover with Deliveroo.
The deal would put DoorDash into direct competition with its US rival Uber Eats in London, one of the most competitive markets for food delivery.