Deliveroo has announced the proposal of a tender offer that will see the food delivery company return £250m to shareholders.

The move follows a £50m return to shareholders that Deliveroo announced in March this year, bringing the total capital return to shareholders in 2023 to £300m – a figure equivalent to approximately 30% of the group’s net cash at the start of 2023.

Deliveroo said the return of value to shareholders represents the “structural surplus of cash in the business”, following review of the group’s capital structure, growth opportunities and required cash balances.

Shareholders have been invited to tender some or all of their A ordinary shares within a minimum price of 115 pence per share and maximum 135 pence per share. Deliveroo intends to purchase 217.4 million shares back in order to deliver the £250m valuation.

Deliveroo also revealed that its tender offer price range represents a premium of 6% to 24% to shareholders, in relation to the closing share price on 26 September – the latest practicable date prior to the release of the tender offer announcement.

The delivery company has bought back 40.7 million shares for a total gross purchase consideration of £44.2m in relation to the £50m buyback programme launched in March, although as of today this programme has now been terminated.

If the full £250m of the new programme is not returned to shareholders through the tender offer, Deliveroo confirmed that its board intends to undertake a second phase of the return of value to return any remaining balance.

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