Shareholders of Delivery Hero (DHER.DE), the German parent company of South Korea's largest delivery platform Baedal Minjok (Baemin), have demanded the resignation of the entire management team over poor business performance.
According to Reuters on Saturday, Aspex, a major shareholder of Delivery Hero, sent a letter to the company's supervisory board demanding the resignation of key executives including CEO Niklas Östberg. Aspex, the second-largest shareholder with a 5% stake in Delivery Hero, has been calling for a complete overhaul of management strategy since late last year as weak performance persisted.
"Other shareholders share the view that the deterioration in operating performance relative to competitors is accelerating," Aspex said in the letter, adding that "significant liabilities are expected due to compliance and internal control failures." Delivery Hero responded in a statement that it is "conducting a strategic review."
Facing a declining share price and reduced investment, Delivery Hero has been focusing on securing cash, including the recent sale of Foodpanda's Taiwan operations to Grab.
