Berlin-based online food delivery giant Delivery Hero is reportedly in advanced negotiations with Singapore’s Grab regarding the partial sale of its Asia business. The deal, which could amount to just over $1.07 billion, is poised to involve the transfer of operations conducted under the foodpanda brand across Singapore, Cambodia, Malaysia, Myanmar, the Philippines, and Thailand, according to reports from Wirtschaftswoche, a prominent business magazine. Both companies have yet to provide official statements regarding this development.

Investors in Delivery Hero have responded positively to these reports, leading to a surge in the company’s shares, with an increase of up to 13.5%. The news comes as Delivery Hero strives to achieve profitability while continuing to expand, addressing concerns among investors following the pandemic-induced boost in its business.

In the first half of this year, Delivery Hero announced that it had attained adjusted profits before interest, tax, depreciation, and amortization (EBITDA), although it refrained from specifying figures. This marked a significant shift from the previous year when the company reported losses amounting to $343.6 million during the same period.

Niklas Oestberg, CEO of Delivery Hero, stated last month that the Asian market presented the most promising opportunities for investment. Meanwhile, Singaporean internet company Grab reported revenues of $567 million in the quarter ending on June 30. The company anticipates reaching a break-even point on an adjusted core earnings basis in the current quarter, primarily driven by the strong growth in its ride-sharing and food delivery segments.

As Delivery Hero continues to seek strategic partnerships and realign its business operations for profitability, the potential deal with Grab showcases the evolving landscape of the global food technology industry and the pivotal role that Asian markets are playing in shaping its future.