2nd Mar 2020 07:51
(Alliance News) - Just Eat Takeaway.com NV on Monday announced the start of legal action against rival and shareholder Delivery Hero SE over the alleged breaking of a standstill agreement.
In late 2018, the then Takeaway.com bought Delivery Hero's German food delivery businesses Lieferheld, Pizza.de, and foodora for EUR930 million in cash and shares. The sale at the time gave Berlin-based Delivery Hero an 18% stake in Takeaway.com.
Dutch food delivery Takeaway.com has since merged with UK-based peer Just Eat, forming Just Eat Takeaway.com.
As part of the deal, which was completed in April 2019, Takeaway.com and Delivery Hero signed a seven-year relationship agreement.
Part of this included a four-year standstill agreement, which stipulated Delivery Hero was not allowed to increase its stake in Takeaway.com. It was allowed to sell shares, but not to any party involved in the online food delivery market.
In mid-February, Delivery Hero announced it would "restore its exposure" to Just Eat Takeaway.com by buying 8.4 million shares to increase its stake to nearly 11%, which had been diluted by the Takeaway.com and Just Eat merger.
"Takeaway.com believes Delivery Hero has failed to comply with its standstill undertaking under the relationship agreement by entering into the forward share purchase and equity collar transaction it announced on February 12, 2020," said Just Eat Takeaway.com on Monday.
"The relationship agreement was entered into in connection with the acquisition of the Germany Delivery Hero businesses in April 2019. Delivery Hero's failure to comply with its standstill undertaking constitutes a breach of the relationship agreement."
"Takeaway.com regrets it now needs to initiate arbitration proceedings with the International Chamber of Commerce to enforce Delivery Hero's standstill undertaking. It will inform the market about the outcome in due course," the company added.
By George Collard; [email protected]
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