BERLIN (dpa-AFX) - The investment in the British food delivery service Deliveroo has not paid off for the German provider Delivery Hero. The MDax-listed company sold its stake in its British industry colleague and posted losses in the millions. Analysts nevertheless see the move as a sensible one. However, Delivery Hero shares fell significantly on Tuesday.

Around 68 million Deliveroo shares were sold to institutional investors at 113 British pence each in an accelerated process, Delivery Hero announced on Monday evening. This corresponds to around 4.5 percent of the company's Class A shares. The sale price is a good seven percent below the closing price of Deliveroo shares on Monday.

Based on the closing price, the total sales value amounts to around 77 million British pounds (around 90 million euros). Delivery Hero paid significantly more when it entered the market in August 2021: The annual report at the time spoke of cash outflows of 318 million euros for the purchase of the minority stake. The investment was made at the height of the coronavirus pandemic, when many people were having food delivered and Deliveroo shares were trading at a much higher price.

Since then, Delivery Hero has also lost considerable value. The food delivery service's shares reached their record high of just over EUR 145 at the beginning of 2021. They then fell sharply, especially from the end of 2021. The shares have also been badly shaken in recent months and fell a further 8.4% to EUR 20.685 on Tuesday morning. This made them the laggard of the MDax, the index of medium-sized stocks.

Analyst Jo Barnet-Lamb from the Swiss bank UBS sees the move as sensible despite the millions in losses. The management of Delivery Hero is acting increasingly pragmatically and making shareholder-friendly decisions. In addition, the sale will put money in the company's coffers, which will help the company with regard to its debt. In addition to these positive aspects, the sale also reminded some Borsians of the company's financial situation.

The share placement is expected to be completed on February 1, Delivery Hero wrote. After that, the company will no longer hold any further shares in Deliveroo. The proceeds from the sale will be used for general corporate purposes./mis/niw/mne/stw