Stock Markets June 2, 2026 05:43 AM

Prosus Rallyes After EC Waiver on Delivery Hero Stake; Uber Takeover Scenario in Focus

European Commission extension gives Prosus more time on reducing Delivery Hero holding, stirring takeover maneuvering and a double-digit jump in Prosus shares

By Avery Klein UBER

Prosus shares jumped more than 10% after reports that the European Commission granted the company extra time to reduce its stake in Delivery Hero to a single-digit percentage beyond the original August deadline. The waiver - whose exact duration was not disclosed - may allow Prosus to temporarily adjust its holding around the time a potential Uber takeover plays out. Broker commentary highlights Prosus' sizable gross cash position but questions remain about whether it could raise its stake above 25% or marshal enough shareholder backing during the extension.

Prosus Rallyes After EC Waiver on Delivery Hero Stake; Uber Takeover Scenario in Focus
UBER

Key Points

  • The European Commission granted Prosus extra time to reduce its stake in Delivery Hero to a single-digit percentage, but did not disclose how long the extension lasts.
  • Prosus is reportedly considering temporarily raising its holding from about 17% to either block a potential Uber takeover or to improve its bargaining position.
  • Stifel noted Prosus had more than 13 billion in gross cash as of March 2026 after recent acquisitions, but said it is unclear whether Prosus could build a stake above 25% or secure sufficient shareholder backing during the extension.

Prosus shares climbed sharply on Tuesday, rising in excess of 10% after reports that the European Commission has given the technology investor an exemption allowing more time to lower its holding in Delivery Hero to a "single-digit" percentage. The extension pushes back the requirement that Prosus reduce its stake beyond the prior August deadline, but the Commission has not disclosed how long the additional period will last.

Market attention has focused on how Prosus might use the waiver. Company executives are reportedly weighing the option of temporarily increasing their stake from roughly 17% in order to either block a potential takeover by Uber or to strengthen Prosus' negotiating leverage in any deal talks. Those intentions were echoed in analyst commentary from Stifel, which said Prosus is considering a temporary uptick in its holding specifically to attempt to block Uber's potential takeover or to ensure a stronger bargaining position.

Stifel also set out balance-sheet context that could matter for any such move. The brokerage noted that Prosus had more than 13 billion in gross cash following completion of the Just Eat Takeaway and La Centrale acquisitions as of March 2026. Despite that cash cushion, Stifel stated it was unclear whether Prosus could build its position above the 25% threshold or rally enough shareholder support during the extension to deter Uber.

On share ownership, Stifel reported that Uber currently holds a 25% stake in Delivery Hero while Prosus' holding stood at 16.8% according to the brokerage. Market pricing reflected these developments; the snippets of intraday moves showed Delivery Hero shares up 3.19%, Uber shares up 4.79% and Prosus shares up 10.05% at the cited moments.

Regarding valuations and takeover scenarios, Stifel reiterated a "hold" rating on Delivery Hero and kept a 40 price target. The brokerage applied a probability-weighted merger-and-acquisition valuation framework that assumed equal probabilities for potential offers of 38, 40 and 42 per share. In Stifel's view, the recent uplift in Delivery Hero's share price has largely reflected the acquisition premium embedded in market pricing rather than changes to underlying operating forecasts.


Taken together, the European Commission's waiver introduces additional strategic room for Prosus in the near term. How Prosus elects to use that flexibility - whether defensively to block a bidder or offensively to secure a better negotiating stance - will depend on both its internal planning and the response of other shareholders, and that calculus remains uncertain given the undisclosed length of the extension.

Risks

  • Duration risk - The European Commission did not disclose the length of the waiver, leaving uncertainty around how long Prosus can adjust its stake; this affects strategic timing for any takeover maneuvering.
  • Stake-building uncertainty - It is unclear whether Prosus could increase its holding beyond 25% or assemble enough shareholder support to deter Uber during the extension, creating execution risk for any defensive or offensive actions.
  • Market pricing vs. fundamentals - Stifel cautioned that Delivery Hero's recent share gains appear to reflect acquisition premium, which introduces valuation risk if a takeover outcome differs from market expectations.

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