10th Dec 2019 08:04
(Alliance News) - Just Eat PLC on Tuesday rejected an increased takeover bid from Prosus NV, saying the offer still "significantly undervalues" the company.
On Monday, Prosus increased its offer for London-listed Just Eat to 740 pence per share in cash, giving Just Eat a value of GBP5.1 billion.
Just Eat has since the reviewed the offer and its board is unanimously recommending shareholders reject the bid, instead favouring the all-share merger with Dutch firm Takeaway.com NV.
Just Eat noted the new upped bid represented a discount of 5% to its closing price on Friday, the last business day before the bid. Just Eat shares rose 0.6% in early trade in London on Tuesday to 785.55p.
Just Eat said: "Just Eat is a leading, strategic asset in the food delivery sector and the board of Just Eat continues to believe the Prosus offer fails to reflect appropriately the quality of Just Eat and its attractive assets and prospects, the benefits of first-mover advantage in a consolidating sector, and, on the basis of its own analysis, the future upside available to Just Eat shareholders through remaining invested in Just Eat and the Takeaway.com combination."
Takeaway.com and Just Eat agreed to a merger in July, under which Just Eat shareholders would get 0.09744 of a Takeaway.com share for each Just Eat share held, implying a value for Just Eat at 731 pence per share.
Following this, internet and media firm Prosus, which was recently spun-off from South African media giant Naspers Ltd, launched a 710p per share, or GBP4.9 billion, cash bid for Just Eat back in October. That offer was rejected.
Prosus and Takeaway have been entangled in a war of words since Prosus stepped in, as they battle it out to acquire Just Eat.
The latest intervention came after Takeaway.com called Prosus's latest Just Eat bid as "derisory".
Prosus defended its bid by noting Just Eat would contribute 73% of the combined revenue should it tie-up with Dutch peer Takeaway.com, labelling the latter's acquisition bid for the London-listed firm as "destructive".
Takeaway urged Just Eat shareholders to support its own "superior" all-share offer.
Prosus shares were 0.9% higher at ZAR978.51 each in Johannesburg on Tuesday morning. Naspers was 0.1% higher in early trade at ZAR2,052.79.
By Paul McGowan; [email protected]
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