Just Eat share price jumps as it agrees key terms in £9bn Takeaway.com merger
Food delivery site Just Eat and Dutch business Takeaway.com today confirmed they had agreed key terms for their possible £9bn all-share merger.
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Following completion of the deal Just Eat shareholders would own approximately 52.2 per cent of the company and Takeaway shareholders would own approximately 47.8 per cent.
Just Eat’s shares soared 23.7 per cent to 786p per share as the market welcomed the tie-up.
Takeaway’s chief executive Jitse Groen would become chief executive of the new group, with Just Eat’s chairman Mike Evans taking the role of chairman of the supervisory board and Takeaway’s chairman Adriaan Nuhn acting as vice-chairman.
The terms value Just Eat at 731p per share, representing a premium of 15 per cent to Just Eat’s 26 July closing share price.
Following the deal the combined group with be incorporated, headquartered and domiciled in Amsterdam, with a premium listing on the London Stock Exchange.
It will “maintain a significant part of its operations in the UK,” an announcement from the two firms said.
The deal would create an online food delivery platform with 360m orders worth €7.3bn (£6.6bn) in 2018.
According to the pair, discussions are at an advanced stage and remain ongoing.
The deal would be structured as a takeover offer from Takeaway.
Read more: Just Eat ready to serve up £9bn merger with Dutch rival
Just Eat has faced months of pressure from activist investor Cat Rock Capital Management to merge with one of its rivals.
The shareholder made the call following the departure of chief executive Peter Plumb and his replacement by interim chief executive Peter Duffy.
Jefferies said the seeds of this deal “were sown years ago”.
“This is a deal with huge logic for Takeaway (albeit, not for traditional reasons),” they added. “We see a high probability that a recommended offer emerges imminently (and middling chances of a counter bid). We imagine Just Eat can secure as much as £11 per share (75 per cent premium).”
Main image credit: Getty