Just Eat Bidding War: Prosus Says Takeaway Bid is not Attractive

Prosus hit back on Wednesday saying that "the Takeaway materials published today continue to underestimate the level of investment required in a sector that is changing rapidly.

Platter Food
Platter Food. Image by 지원 이 from Pixabay

Takeaway announced on Wednesday that its bid offer for Britain’s Just Eat presented a compelling opportunity for both companies.

The Takeaway’s offer is backed by Just Eat’s boards despite a higher bid price from cash-flush larger rival Prosus, which is owned by South African-based tech giant Naspers.

Prosus hit back on Wednesday saying that “the Takeaway materials published today continue to underestimate the level of investment required in a sector that is changing rapidly.

“Just Eat requires substantial investment in technology, product, marketing and own-delivery to capture its long-term opportunity,” Prosus said in a statement, emailed to TechFinancials.

“With our global experience, we are best placed to support Just Eat with this transformation, and ours is the only offer that provides the certainty of cash to shareholders at attractive and fair value.”

Just Eat has rejected a £5bn hostile swoop by Prosus, the Dutch arm of South Africa internet titan Naspers. Its board is instead recommending investors support a planned merger with Takeaway that was announced this summer.

The Euronext and JSE-listed tech giant owned by Naspers has made a bid of 4.9 billion pounds ($6.35 billion or R94 billion) or 710 pence a share, in cash. For more read: Naspers’ Prosus Makes R94bn Bid For Just Eat

Just Eat is looking to complete a merger with Takeaway.

Just Eat
Just Eat. Image source: Currency.com

On Wednesday, Takeaway said it continues to believe that the combination with Just Eat has a compelling strategic rationale and represents an attractive opportunity for both Just Eat and Takeaway.

The company added that plans for the merger include introducing Takeaway’s branded delivery service in Britain and combining the companies’ IT systems to save on costs.

On Monday, Prosus said through its proposed acquisition it will back Just Eat’s management team and employees and support the next phase of Just Eat’s development.

“Prosus has the conviction and financial resources to invest in Just Eat’s product, technology, marketing and own-delivery capabilities and help Just Eat achieve its long-term potential, whilst also targeting an appropriate risk-adjusted return on invested capital for Prosus shareholders.”

Prosus is a strategic global investor and operator focused on creating long-term value by building and scaling consumer internet businesses through organic growth and strategic M&A. It aims to build strong companies that create value by addressing big societal needs in high-growth markets with long-term potential.

For more read: Naspers’ Prosus Threatens To Leave Just Eat if it Merges With Takeaway.com

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