Germany-based online food delivery service Delivery Hero is considering partially divesting its Asian business to the Singapore-based tech company Grab.

News of the deal was first reported by German weekly business news magazine Wirtschaftswoche.

Although the final deal value is still under negotiation, it is estimated that Grab could pay a little more than €1bn ($1.07bn) for the unit, according to Wirtschaftswoche’s report.

The food delivery platform is likely to sell its activities under the Foodpanda brand in Singapore, Cambodia, Laos, Malaysia, Myanmar, the Philippines and Thailand.

Delivery Hero is said to have been concentrating on profitability, growth and maintaining investor confidence.

In April this year, Delivery Hero posted total segment revenues of €2.5bn in the first quarter of this year, a 12% increase from the same period last year.

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Its gross merchandise value (GMV) grew 16%, primarily driven by growth across all markets except Asia.

GMV in Asia declined by 7% while revenues dropped to €924.1m from €928m due to the impact of the Covid-19 pandemic.

In its 2023 outlook, Delivery Hero confirmed its earlier adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA)/GMV margin projection of more than 0.5% for the full year and more than 1% for the second half.

In July this year, Delivery Hero acquired the remaining 37% stake in its Saudi Arabian subsidiary HungerStation for a total consideration of €267.3m.