Delivery Hero shares rose on Monday after the German food delivery company agreed to sell its Taiwan operations to Southeast Asian super-app Grab Holdings for $600 million in cash, marking the first deal under a strategic review aimed at reducing debt.

The deal, to be completed on a cash-free, debt-free basis, is subject to regulatory approvals and is expected to close in the second half of 2026.

Delivery Hero said it would use the net proceeds to repay debt and for general corporate purposes.

Taiwan’s foodpanda operations generated gross merchandise value of €1.5 billion and posted positive adjusted earnings before interest, taxes, depreciation and amortisation, excluding allocated group costs, in full-year 2025.

The sale marks the first transaction under a strategic review the Berlin-based company is conducting with financial adviser JP Morgan.

“This divestment is a key first step in our ongoing strategic review,” chief executive and co-founder Niklas Östberg said. “This deal comes as we are transforming into an Everyday App by improving the user proposition and offering more verticals to capture more of our customers’ needs throughout the day.”

For Grab, the acquisition represents its ninth market and first outside Southeast Asia.

“We see a significant opportunity to grow the food and groceries delivery scene here,” Grab group chief executive and co-founder Anthony Tan said.

Because the transaction involves separating Taiwan’s food delivery operations from Delivery Hero’s global infrastructure, the company said it required an extensive negotiation and preparation phase to keep the business operational during the transition.

Delivery Hero said it remained fully committed to operating as usual until the deal closes, after which foodpanda’s customers, vendors and delivery partners in Taiwan will be transitioned to Grab.