Naver, which has invested in the delivery application’People of Delivery’, has gained more than 10 times the original amount.
Naver announced on the 2nd that it will acquire 1.69 million 1051 shares of Delivery Hero in Germany through a public announcement.
Earlier, in October 2017, Naver invested 35 billion won (4.7% stake) in Elegant Brothers, a nation-wide operator of delivery, as a new stock acquisition method. Accordingly, Naver held 52,5462 shares of elegant brothers. Later, as German Delivery Hero acquired the elegant brothers, Naver received shares worth $100 million in cash and $89 million (approximately KRW 1008 billion) in December 2019.
This amounted to six times the amount of investment at the time, but as delivery hero stocks increased further, profits increased. Delivery Hero stocks received by Naver are valued at 247.7 billion won as of the day. If you add 100 million dollars (1125 billion Korean won) in cash that you have decided to receive, a total of 36.2 billion won, which is more than 10 times the principal amount. Excluding the principal, the rate of return is a whopping 507% at 2127 billion won.
Meanwhile, when Naver invested in the people of delivery, it also promoted service linkage, such as enabling delivery orders through the artificial intelligence (AI) speaker’Clova’. Kim Bong-jin’s Founder of Graceful Brothers will take over the chairmanship of’Woah DH Asia’, a joint venture (JV) established by Delivery Heroes and Graceful Brothers in Singapore.