DURBAN – Takeaway.com has upped the ante in the stakes to acquire Just Eat after it said yesterday that it was planning to proceed with a £4.9 billion (R94.97bn) all-share offer for British online food order and delivery service company and block a rival bid from internet giant Prosus.
Takeaway.com, which is listed in Amsterdam, agreed to merge with Just Eat in August through a scheme of arrangement.
However, after Prosus entered the bidding war with Takeaway.com, reports yesterday said the Dutch company intended to buy Just Eat through an offer with a shareholder acceptance threshold of 75 percent, adding that such a structure would increase the chances of the deal going through.
Peter Takaendesa, a portfolio manager at Mergence Investment Managers, said Takeaway.com had only changed the structure of the proposed transaction to allow it flexibility with the required shareholder votes, but had not changed the share exchange ratios and, consequently, the current value of its all-share offer for Just Eat is still materially below the 710p all-cash offer from Prosus.
“Our view therefore remains that Prosus has a better deal for Just Eat shareholders. Whether it is a fair price or not depends on Just Eat shareholders’ risk tolerance and expected future returns from the growth of the food delivery market. Although Prosus is offering close to 20 percent premium, there must be some value left on the table for them to extract in the long term as we believe it is unlikely that they are desperate to acquire Just Eat,” Takaendesa said.