Just Eat Takeaway.com, the renowned online food delivery service, is on the brink of a significant transition as it prepares for an acquisition by technology investor Prosus. This strategic move aims to establish a 'food delivery champion' in Europe, a sentiment echoed in the companies' joint announcements made on Monday. In the aftermath of the acquisition news, Just Eat, based in the Netherlands, saw an impressive surge in its stock value, climbing over 53% in Amsterdam by late Monday morning.
In contrast, Prosus experienced a setback, with its shares dropping nearly 7% both in Amsterdam and Johannesburg. Prosus has proposed a public offer to acquire the entire issued share capital of Just Eat for 20.30 euros per share in cash, placing Just Eat's valuation at a notable 4.1 billion euros.
This offer represents a staggering 63% premium over Just Eat's closing share price on February 21, emphasizing the ambitious nature of this merger agreement, which aims to forge the fourth-largest food delivery group worldwide. Leaders of Just Eat have come together to unanimously recommend that shareholders accept the offer.
Key figures, including Chief Executive Officer Jitse Groen, have pledged to tender their shares, signaling confidence in the merger. Just Eat's Chairman, Dick Boer, highlighted the benefits of the acquisition, stating, 'Just Eat Takeaway.com will benefit from Prosus' significant financial resources to support investment in the business with a long-term investment horizon.' Boer further elaborated that after a meticulous and thoughtfully conducted process, the supervisory board believes Prosus has put forward a compelling offer that delivers an attractive cash premium to its shareholders, alongside favorable non-financial terms and commitments regarding deal certainty. This acquisition complements the existing investments of Prosus and its food delivery portfolio outside of Europe, creating a synergy that could enhance market presence.
Prosus CEO Fabricio Bloisi emphasized the potential benefits, asserting, 'We believe that combining Prosus' strong technical and investment capabilities with Just Eat Takeaway.com's leading brand position in key European markets will create significant value for our customers, drivers, partners, and shareholders.' Under the new structure, Just Eat will maintain its headquarters in Amsterdam, continuing its operations under its existing name while preserving its key brands.
The acquisition process is set to launch in the second quarter, with settlement anticipated by the conclusion of 2025. However, it is crucial to note that this deal’s completion will still be contingent upon obtaining regulatory approvals and meeting customary conditions. Market analysts from Bernstein have lauded the offer as a 'positive' step for both the food delivery industry and Prosus' ongoing commitment to this sector.
They remarked, 'The price Prosus will be paying reflects a slight premium to our TKWY base case price. We view this price as attractive given TKWY had been perceived by some as less strong compared to peers when it comes to asset monetisation.' As the food delivery landscape continues to evolve, this acquisition represents a significant development that could reshape the industry dynamics in Europe and beyond.
The perspective of market analysts suggests this acquisition may pave the way for future innovations and investments in the food delivery ecosystem..