Just Eat shareholders end takeaway takeover battle

Daniel Fowler
January 12, 2020

Just minutes later, Takeaway.com upped the value of its own bid by reducing the share of the merged company that its own shareholders would receive.

Amsterdam-based Takeaway.com (TKWY.AS) said that 80.4% of Just Eat shareholders had agreed to the all-share offer, well above the 50% threshold needed to make the offer unconditional.

On December 19, Prosus tabled the terms of the final increased offer valuing 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 tender period for both of the rival bidders would conclude by Friday (January 10th). As a result of a fall in Takeaway.com's share price since then it was worth 902p a share on Friday.

The combination of the two firms will create a delivery service worth around nine billion pounds ($11 billion) capable of competing against Britain-based Deliveroo and Uber Eats of the United States. "While we have significant financial capacity we believe that our final offer of 800 pence per share was appropriate in light of the investment required".

"Just Eat Takeaway.com is a dream combination".

Dutch giant Takeaway.com was bidding against tech investment firm Prosus.

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Takeaway Chief Executive Officer Jitse Groen, who will lead the new company, was publicly irritated by the Prosus challenge.

Prosus had argued it has the resources to make the significant investments in Just Eat necessary for it to stay competitive.

"Our core operating segments are growing fast with a significant runway ahead of them", he said.

More than 80 per cent of Just Eat's shareholders have accepted the bid from its Dutch peer, making it a done deal.

Just Eat is listed on the FTSE 100 stock exchange in London.

Prosus had claimed that the Takeaway.com offer would be "highly value destructive" and that the all-cash acquisition by Prosus would create better value for shareholders.

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