Deliveroo has proposed to return up to £250 million (€289.3 million) to shareholders with a tender offer, following consultations and considering the preferences expressed on potential distribution mechanisms.
As a result, Deliveroo has invited qualifying shareholders to tender some or all of their A Ordinary Shares at a price within the range of 115 pence per share to 135 pence per share.
Chief executive Will Shu, the holder of all the issued B Ordinary Shares, has confirmed he would not participate in the tender offer.
As a result the board has determined that only A Ordinary Shares will be eligible for tender pursuant to the offer.
Each of the directors has confirmed that he or she does not intend to tender through the offer any of his or her individual holdings of A Ordinary Shares of the company, Deliveroo added.
Second Phase Of 'Return Of Value'
If the full £250 million (€289.3 million) is not returned to shareholders through the tender offer, the board intends to undertake a second phase of the 'return of value' to replace any remaining balance.
The board intends to return any such balance by way of an on-market share buyback of A Ordinary Shares and/or a special dividend payable to A Ordinary Shareholders and B Ordinary Shareholders.
In August, Deliveroo announced its intention to return £250 million to shareholders in addition to its previous announcement to return £50 million (€57.9 million) in March.
This brings the company's total capital return to shareholders announced in 2023 to £300 million (€347.1 million), equivalent to approximately 30% of net cash at the start of 2023.
The 'return of value' represents the structural surplus of cash in the business following the company's review of its capital structure, growth opportunities and required cash balances, both now and in the future, the company noted.
