25th Nov 2019 09:21
(Alliance News) - Takeaway platform operators Just Eat PLC and Takeaway.com reaffirmed their support for a merger, once again rejecting Prosus NV's attempt at a takeover of Just Eat.
Dutch firm Takeaway.com in July proposed a merger with Just Eat, a FTSE 100 member. Under the deal, Just Eat shareholders would get 0.09744 Takeaway.com shares for each Just Eat share held, which would imply a value for Just Eat at 731 pence per share based on Takeaway.com's closing share price on July 26 of EUR83.55.
London-based Just Eat shares were 0.2% higher on Monday morning in London at a price of 754.40p each.
However, in October internet firm Prosus NV, which was recently spun-off from South African media giant Naspers Ltd, launched a 710p per share, or GBP4.9 billion, counter bid for Just Eat, which it labelled a 20% premium to Takeaway.com's offer.
Just Eat and Takeaway.com have both repeatedly rejected the Prosus offer, with Prosus labelling the merger a "significant risk" to Just Eat shareholders.
On Monday, Just Eat once again urged shareholders to reject Prosus and back the merger.
Takeaway.com Chief Executive Jitse Groen added: "This merger combines the two most profitable European food delivery websites: Just Eat in the UK and Takeaway.com in the Netherlands. We believe it is realistic to expect Germany, which is already more than double the size of our Netherlands' business, will over time trend towards the Dutch earnings before interest, tax, depreciation, and amortisation margin.
"The strong cash generating capability of these profit pools will continue to fuel the growth of the combination. Our team has a proven ability to win in competitive markets and has defeated numerous competitors in many countries, whether large scale tech giants or well-funded, own-delivery challengers. We remain strongly committed to the merger."
By George Collard; [email protected]
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