Prosus criticizes rival Takeaway bid for Britain’s Just Eat

One America News Network Finance 2 weeks ago

November 20, 2019

AMSTERDAM (Reuters) – Technology company Prosus on Wednesday criticized rival suitor Takeaway.com’s bid for British food delivery service Just Eat, saying it presents “significant risks” for shareholders.

Prosus’s broadsides against Takeaway come after a two-week period in which Takeaway’s share price has rallied to a point where its all-share offer for Just Eat is nearly level in value to that of Prosus’s 4.9 billion pound ($6.3 billion) cash bid.

Prosus said in a statement that Takeaway’s offer “takes a narrow view of the food delivery sector based principally on its experience in the Netherlands and Germany – markets that have so far been relatively insulated” from competition of the likes of Uber Eats and Deliveroo.

Takeaway argues its bid, which has the backing of Just Eat’s board, will create a global powerhouse in food ordering, and save the combined group 20 million euros in costs over time.

Earlier on Wednesday, Takeaway launched its formal offer for Just Eat, asking shareholders to tender their shares by Dec. 11, the date on which both offers for Just Eat are currently scheduled to end.

Just Eat’s board has recommended shareholders accept the Takeaway offer, and that they reject the Prosus bid, which Just Eat said “significantly undervalues” the company.

Takeaway’s offer, which would see its founder Jitse Groen become CEO of the combined group, valued Just Eat at 698 pence or 4.76 billion pounds ($6.14 billion) as of the close of trade on Tuesday, according to Reuters calculations.

Just Eat shares traded at 752.4 pence at 1120GMT on Wednesday, signaling that shareholders believe a higher bid is likely.

“Takeaway.com’s claim that it can achieve a meaningful own-delivery rollout with no impact on the bottom line and through only tens of millions of investment is, in Prosus’s view, unrealistic and demonstrates their lack of experience with the own-delivery business model,” Prosus’s statement said.

Takeaway did not immediately have a response to Prosus’s criticisms. In a Nov. 12 statement, Takeaway said it expected to incur costs “in the tens of millions”, to reposition the combined group for long term growth, including rolling out its “Scoober”-branded delivery service in Britain.

Groen’s strategy in the Netherlands and Germany has centered on becoming the dominant platform for food ordering, with food delivery seen as a supplementary business with worse economics.

On Nov. 11, CEO Groen said that Takeaway and Just Eat’s combined strength would stand “in stark contrast with most other food delivery websites, which are loss-making and in our opinion, will likely never become profitable.”

Takeaway shares have rallied 17% since Nov. 5, the day after it announced it would change the format of its original Aug. 5 offer, paving the way for an acceptance threshold of 75% or possibly lower.

(Reporting by Toby Sterling; editing by Jason Neely and Alexandra Hudson)


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Reuters › Finance › 2 weeks ago
Technology company Prosus on Wednesday criticized rival suitor Takeaway.com's bid for British food delivery service Just Eat, saying it presents "significant risks" for shareholders.
The New York Times › Finance › 5 days ago
Dutch meal delivery firm Takeaway.com defended its $6.1 billion (4.9 billion pounds) all-share offer for Just Eat on Tuesday, saying rival cash bidder Prosus was trying to buy the British company "on the cheap", even though its bid is higher.
Reuters › Finance › 1 month ago
Takeaway.com has changed its line of attack in the battle to buy food delivery ordering service Just Eat , effectively lowering the threshold for approval of its offer as it seeks to fend off rival suitor Prosus .
Reuters › Finance › 3 weeks ago
Netherlands-based Prosus said on Monday it had published its cash offer document to buy online takeaway delivery platform Just Eat for 710 pence a share, pitching its bid against rival Takeaway.com with a lowered acceptance threshold of 75%.
The New York Times › Finance › 3 weeks ago
Netherlands-based Prosus said on Monday it had published its cash offer document to buy online takeaway delivery platform Just Eat for 710 pence a share, pitching its bid against rival Takeaway.com with a lowered acceptance threshold of 75%.
The New York Times › Finance › 3 weeks ago
Takeaway.com said on Wednesday that its offer for Britain's Just Eat, which is backed by Just Eat's boards despite a higher bid from larger rival Prosus, presented a compelling opportunity for both companies.
The New York Times › Finance › 1 month ago
Takeaway.com has changed its line of attack in the battle to buy food delivery ordering service Just Eat, effectively lowering the threshold for approval of its offer to fend off rival suitor Prosus.
The New York Times › Finance › 2 weeks ago
Internet group Prosus is confident about its $6.3 billion (5 billion pounds) offer to buy Just Eat, CEO Bob van Dijk said on Friday, even though a rise in rival bidder Takeaway's shares has all but wiped out its financial upper hand.
Reuters › Finance › 1 week ago
Britain's Just Eat urged shareholders on Monday to shun a $6.3 billion cash offer from Prosus , saying a currently lower valued deal with Takeaway.com was a better bet as it would create the largest food delivery firm outside China.
The New York Times › Finance › 3 weeks ago
Takeaway.com NV CEO Jitse Groen said on Wednesday he does not plan to improve his company's 4.3 billion pound ($5.50 billion) all-share bid to buy British rival Just Eat PLC, despite a higher cash offer from rival Prosus NV.
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