23rd Oct 2019 08:54
(Alliance News) - Takeaway.com NV on Wednesday reiterated support for a proposed all-share merger between it and FTSE 100 takeaway firm Just Eat PLC, following a rebuffed offer from Amsterdam and Johannesburg-listed Prosus NV.
In response to Just Eat's rejection of the Prosus bid, Takeaway.com Chief Executive Jitse Groen said the Just Eat-Takeaway.com merger would create "a superb company".
"Having been in the industry for nearly twenty years, I believe a truly successful food delivery website is a highly profitable one, in a very sizeable food delivery market. Most food delivery websites currently do not fit that description, and in my opinion, will remain perpetually loss-making," Groen said.
"It is only companies like Just Eat and, indeed, Takeaway.com, that achieve material profits in their bigger markets, and our merger needs to be seen in that context. We are in it for the long term," he added.
On Tuesday, Prosus made a GBP4.9 billion cash bid for Just Eat, offering Just Eat shareholders an alternative to the Takeaway.com merger.
However, Just Eat rejected the offer, claiming it "significantly undervalues Just Eat and its attractive assets and prospects both on a standalone basis and as part of the proposed recommended all-share combination with Takeaway.com".
Just Eat said Prosus made three bids, at 670p, 700p, and finally 710p, but all of them were rejected.
Shares in Just Eat were up 0.9% at 738.80 pence in London on Wednesday. Prosus's shares were down 1.8% at ZAR1,056.93 in Johannesburg, and 2.3% lower at EUR64.89 in Amsterdam.
Takeaway.com's shares were down 1.0% at EUR71.85 in Amsterdam.
By Dayo Laniyan; [email protected]
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