Just Eat might be removed from the Takeaway menu

Just Eat might be removed from the Takeaway menu

On the same day that Just Eat published the scheme document in relation to its merger with Takeaway.com N.V., Prosus N.V., the investments vehicle of Naspers Limited, announced an unsolicited offer of £4.9 billion for the group.

In its approach, Prosus said that Just Eat’s Q3 financial results showed that growth was slowing and that the business needs a ‘substantial investment’ which Prosus believes it can provide. Further, the company believes that the Just Eat-Takeaway merger would not give Just Eat this investment. Prosus is a leading operator and investor in food delivery, having backed names such as iFood (Brazil), Delivery Hero (Germany) and Swiggy (India), and in its offer Prosus draws on this experience of investment to make the case to Just Eat shareholders.

It is hoped that a Just Eat-Takeaway merger would create a leading global online food delivery marketplace, operating in 23 countries and partnering with over 155,000 restaurants. Such a group would be able to compete with Uber Eats and Deliveroo, the latter of which received an investment from Amazon. The threat from these two companies is substantial. Prosus however believes that its offer and the investment it will put into Just Eat offers better value than the merger with Takeaway. The company for example states that Takeaway.com invested in an acquisition, Scoober. Scoober then only represented 4.9% of Takeaway.com’s reported total orders in the first half of 2019.

Prosus’ hostile bid comes just as there was evidence of investor dissent building up in the Just Eat/Takeway merger. Eminence Capital, the New York-based hedge fund which owns around 4% of Just Eat criticised the merger as a ‘gross undervaluation’.  Similar criticism was echoed by Aberdeen Standard Investments, one of the company’s top 10 shareholders. The merger values Just Eat shares at 731p a share (giving an offer value of £4.98 billion), but Just Eat has traded higher than this price since the announcement in August. Takeaway’s Share price was

Subscription Form

Related Articles:
Latest Articles:

Already a subscriber? Login
RELX (UK) Limited, trading as LexisNexis, and our LexisNexis Legal & Professional group companies will contact you to confirm your email address. You can manage your communication preferences via our Preference Centre. You can learn more about how we handle your personal data and your rights by reviewing our  Privacy Policy.

Access this article and thousands of others like it free by subscribing to our blog.

Read full article

Already a subscriber? Login

About the author:

Market Tracker is a unique service for corporate lawyers housed within Lexis®PSL Corporate. It features a powerful transaction data analysis tool for accessing, analysing and comparing the specific features of corporate transactions, with a comprehensive and searchable library of deal documentation across 14 different deal types. The Market Tracker product also includes news and analysis of key corporate deals and activity and in-depth analysis of recent trends in corporate transactions.