Naspers-owned tech giant Prosus has tabled a final cash offer to buy Just Eat, which operates a leading global hybrid marketplace for Online Food Delivery.

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

Earlier this month, Prosus raised its terms to 740p a share. The increased offer was at a 25.6% premium to Just Eat’s closing share price on 21 October 2019. For more read: Naspers’ Prosus Ups Offer for Just Eat to R98bn

The company has now raised its terms to 800p a share.

The terms of the final increased offer value the entire issued and to be issued ordinary share capital of Just Eat at £5.5 billion and represent a premium of 36% to the closing price of 589 pence per Just Eat Share on 21 October 2019. The company said this final offer already includes a premium from the Takeaway.com’s offer.

Prosus believes this offer compares favourably with precedent premia for such transactions in a UK context.

“We have been very clear from the beginning about our ambition to build the world’s leading Food Delivery business. The acquisition of Just Eat, which brings its portfolio of good market positions, would be a meaningful step in realising this goal. Following extensive discussions with Just Eat’s and Prosus’s shareholders, we have decided to make a final increase in our cash offer to 800p per share,” Bob van Dijk, the Group CEO of Prosus, said.

Prosus believes that it is the right owner for Just Eat and its final increased offer provides compelling and certain value to Just Eat shareholders at a further premium to Takeaway.com’s all-share offer, which comes with significant risk.

Prosus urges Just Eat shareholders to accept the final increased offer as soon as possible and, in any event, by no later than 1.00 p.m. (London time) 10 January 2020.

“This level delivers an outstanding and certain value to Just Eat shareholders while also providing an appropriate return for our own shareholders, given strong levels of competition and the significant investment required to reinvigorate growth,” Prosus explains.

“We urge Just Eat shareholders to accept this final offer and bring the uncertainty around Just Eat’s future to a close.”

 

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