The battle for control of Just Eat intensified today when Naspers-owned tech giant Prosus raised its offer to R98 billion.
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.com that was announced this summer.
In October, the Euronext and JSE-listed tech giant made a bid of 4.9 billion pounds ($6.35 billion or R94 billion) or 710 pence a share, in cash for Just Eat. For more read: Naspers’ Prosus Makes R94bn Bid For Just Eat
The company has now raised its terms to 740p a share.
The increased offer is at a 25.6% premium to Just Eat’s closing share price on 21 October 2019.
“Just Eat is a quality business, which we believe has all the ingredients to be transformed into a long- term sector winner. In recognition of this potential, we have decided to increase our offer to 740 pence per share, which we believe provides Just Eat Shareholders with compelling value and therefore good reason to accept our all-cash offer,” Prosus’ chief executive, Bob van Dijk, said.
“Unlike the Takeaway.com Offer, which relies on shares remaining at an above sector multiple, our cash offer provides certainty of value to Just Eat Shareholders. We urge shareholders to accept our offer, as it is the only one that delivers certainty in the face of undeniable industry change.
“Prosus encourages the Just Eat Board to recognise the superior value of Prosus’s increased offer.”
Prosus said it continues to believe that Just Eat is an attractive business, albeit one that requires investment which has now also been acknowledged by the Just Eat Board, which Prosus has taken into account when assessing the targeted return on investment for its shareholders and the price it can justify offering for Just Eat.
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.
The company owns big food delivery brands such as iFood, Swiggy and DeliveryHero.
Prosus came to market in September 2019 through the listing of the international internet assets of Naspers, a global consumer internet group and remains 74.06% owned by Naspers.
Its businesses and investments serve more than 1.5 billion people in 89 markets and are amongst the leading players in 77 of those markets. The group directly employs more than 20,000 people globally, with many more employed by its associates.
The Just Eat Group operates a leading global hybrid marketplace for online Food Delivery, connecting over 27 million consumers with more than 107,000 restaurant partners across the UK, Australia, New Zealand, Canada, Denmark, France, Ireland, Italy, Mexico, Norway, Spain, Switzerland and Brazil.
Founded in Denmark in 2001 by five entrepreneurs, Just Eat is a FTSE 100 listed company and one of the leaders in online and mobile food ordering.