19th Sep 2014 06:44
LONDON (Alliance News) - Just Eat PLC Friday said its Brazilian business RestauranteWeb has merged with Brazilian online restaurant delivery company iFood.com Agencia de Restaurantes Online.
The new company will be called IF-JE Participações Ltda and will be a joint venture between Just Eat and iFood's existing shareholders.
Just Eat will transfer all of the share capital of Just Eat Brazil Servicos Online Ltda, which trades as RestauranteWeb to IF-JE, which will also include all of the share capital of iFood.
As part of the agreement Just Eat also will make an investment of GBP3.5 million in cash into IF-JE for future business expansion.
Following the transaction IF-JE will be 25% owned by Just Eat, 24.98% owned by the iFood founders and 50.02% owned by Movile Internet Movel S.A. When iFood was created, it received an investment from Movile, which develops mobile content and e-commerce platforms in Latin America.
FTSE 250-listed Just Eat said the value of the gross assets of RestauranteWeb at the end of June was GBP1.3 million, while the net loss before tax for the year ending December 31, 2013 was GBP2.6 million.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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