25th Nov 2019 13:30
(Alliance News) - Prosus NV hit back at Just Eat PLC and Takeaway.com on Monday, saying its offer for the former is a more attractive prospect than a merger.
Internet and media firm Prosus NV, which was recently spun-off from South African media giant Naspers Ltd, launched a 710p per share, or GBP4.9 billion, bid for FTSE 100 takeaway platform Just Eat.
In July, Just Eat and Dutch rival Takeaway.com agreed a merger which valued Just Eat at around 731p based on Takeaway.com's share price on July 26, the day before a potential merger announcement was made. Just Eat was 0.4% higher on Monday afternoon in London at 756.20p.
Just Eat and Takeaway.com have both repeatedly rejected the Prosus offer, and earlier Monday reiterated support for their own merger.
Prosus Chief Executive Bob van Dijk commented: "While historically Just Eat has been a strong business, today it is at an important inflection point. Just Eat's board is now acknowledging the increased investment required and the impact this will have on their profit pool, but in our view continues to underestimate the severity of the competitive pressure and the urgency of the investment need.
"We continue to believe the Takeaway.com offer represents significant risk to Just Eat shareholders based on Takeaway.com's very high multiple and the level of investment required to address what customers now expect."
"We continue to believe our offer is the right one for Just Eat shareholders and provides compelling and certain value," he added.
The first closing date for the Prosus offer is 1300 GMT on December 11.
Prosus was 1.2% higher on Monday in Johannesburg at ZAR1,025.20 a share. It is 73%-owned by Naspers, from which it was spun off in September.
By George Collard; [email protected]
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