Deliveroo founder Will Shu sells £47m worth of shares to pay tax bill

Deliveroo collapses after founder Will Shu sells £47m worth of shares at well below listing price to pay tax

Deliveroo founder Will Shu has sold £47 million worth of shares in the takeaway group to pay a tax bill.

The 42-year-old sold 16.9 million shares at 278p each – well below the 390p float price earlier this year.

The sale came after he received £62.5 million worth of shares in the company he founded in 2013.

Tax bill: Deliveroo founder Will Shu unloaded 16.9 million shares of 278p each – well below the share price of 390p earlier this year

Finance boss Adam Miller also got shares worth £2.3m and sold £1.9m for tax purposes.

Shares of Deliveroo fell 9.5 percent, or 27.5 pence, to 262.6 pence on the news, valuing the company at £4.6 billion. That’s a long way from the £7.6bn it was worth when it floated in London in March.

Shu and Miller both have long-term agreements that reward them with new shares in the company depending on how it performs.

Their huge tax bills are for shares that vested with the company’s IPO in March and every month since.

Starting next year, the pair’s shares will instead vest annually.

Shu and Miller agreed when Deliveroo went public not to sell shares for the first year.

But these deals were part of an exemption that allowed them to sell for tax purposes.

Deliveroo’s debut on the London Stock Exchange was a flop that has been called the ‘worst ever’ UK float.

It was valued at 390 pence a share when it went public, but fell immediately when it started trading, only briefly surpassing its floating price in August.