FRANKFURT, March 24 (Reuters) - Aspex, a top Delivery Hero shareholder, on Tuesday urged the online takeaway food group's supervisory board to oust the CEO and his top management team in an escalation
Aspex calls for Delivery Hero CEO's removal in escalation of campaign
Aspex Urges Overhaul of Delivery Hero Leadership and Strategy
Shareholder Letter Demands Management Changes
FRANKFURT, March 24 (Reuters) - Aspex, a major Delivery Hero shareholder, on Tuesday urged the online takeaway group's supervisory board to oust the CEO and his top management team, escalating the investor's push for a strategic overhaul.
"Wholesale changes in the management team will be required to address issues faced by the company," Aspex Management said in a letter to Delivery Hero Chair Kristin Skogen Lund and other members of the non-executive supervisory board, seen by Reuters.
Criticism of CEO Niklas Oestberg's Strategy
"Fellow shareholders share our view that (CEO) Niklas Oestberg's strategy is flawed, and that Delivery Hero’s operational underperformance against peers is accelerating," it said, adding that the company had suffered from compliance and control failures.
Delivery Hero's Response to Aspex
Delivery Hero acknowledged the letter from Aspex.
"We are progressing with the strategic review and it remains an ongoing core focus of both the Management and Supervisory Board," it said in a statement.
Escalation of Shareholder Pressure
The direct call for Oestberg's removal marks an escalation after Aspex wrote to him earlier this month, warning his job could be at risk without faster progress in the review.
Foodpanda Taiwan Sale and Strategic Review
On Tuesday, Delivery Hero agreed to sell its Foodpanda delivery business in Taiwan to ride-hailing and delivery firm Grab <GRAB.O> for $600 million in cash, which Oestberg called "a key first step" in the review.
Shareholder Reaction to Foodpanda Deal
Aspex said the deal terms showed the business's value had been "significantly eroded".
Call for Further Asset Divestments
"This stresses the urgency by which further assets must be divested in competitive sales processes to prevent further destruction of shareholder value," it added.
(Reporting by Alexander Huebner in Munich and Hakan Ersen in Frankfurt. Writing by Ludwig Burger. Editing by Madeline Chambers and Mark Potter)
