Takeaway.com admits its own offer for Just Eat is not ‘particularly appealing’
Takeaway.com boss Jitse Groen has admitted his firm’s offer for Just Eat is not “particularly appealing” for shareholders, as a takeover battle for the food delivery platform intensifies.
Takeaway and Just Eat agreed the terms of an offer for the business in August, however, South Africa’s Prosus launched a rival £4.9m bid.
Read more: Takeway.com seeks to add certainty to Just Eat deal
Just Eat rejected Prosus’ unsolicited offer in favour of the Takeaway deal, however the company’s shareholders have in recent weeks that the value of the deal could be diminished by Takeaway’s falling share price.
Prosus this morning lowered the acceptance threshold for investors to approve its offer from 90 per cent to 75 per cent.
Groen said: “Given the circumstances, I can fully understand that the current cash values of both our and the competing offer aren’t particularly appealing to the Just Eat shareholders, and seem to be quite far removed from the fair value of Just Eat.
“We do however believe that the agreed merger ratio between Just Eat and Takeaway.com is appropriate.”
He added: “Including the UK, the Just Eat Takeaway.com combination will… operate in three out of the four major profit pools globally available. This in stark contrast with most other food delivery websites, which are loss-making, and in our opinion, will likely never become profitable.”
Prosus reportedly warned investors this weekend that it would walk away from the delivery company if they decide to back the Takeaway.com merger.
The company is not interested in buying the merged group, the Telegraph reported yesterday.
Read more: Just Eat shareholder calls on board to consider rival offers
The company did not increase its bid for the delivery firm in a full offer document for Just Eat published this morning.
In Prosus’ offer document the company said: “Through this proposed acquisition, Prosus will back Just Eat’s management team and employees and support the next phase of Just Eat’s development.”
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