Just Eat Takeaway.com’s shares (TKWY.AS) soared 54% overnight after Europe's biggest meal delivery firm agreed to a takeover by Dutch-based internet investor Prosus.
Prosus, which already has a 28% stake in German rival Delivery Hero, has made an all-cash offer that values Just Eat at €4.1 billion.
The technology investor’s offer represents €20.3 euros per share on the Amsterdam exchange, a 22% premium on the highest value of its stock over the past three months and a premium of 63% compared to the firm’s closing price on Friday.
Shares in Prosus, which is majority owned by South Africa’s Naspers, fell 8.7% on the pan-European Stoxx 600 index following the announcement.
The Prosus offer was unanimously supported by Just Eat's management and board which was planning to delist its shares from the London Stock Exchange citing “low liquidity and trading volumes” of its shares on the exchange.
Rocky road
A star of the pandemic when people turned to food delivery during lockdown, Just Eat fell out of favour following the pandemic which triggered a major shift in consumer habits.
The pandemic aside, also leading to the downfall of Just Eat was the disastrous acquisition of its U.S. rival GrubHub at the height of the pandemic bubble. Late last year Just Eat confirmed it was selling GrubHub to Wonder for $650 million, a fraction of the $7.3 billion purchase price.
“We are very excited for Just Eat Takeaway.com to join the Prosus group and the opportunity to create a European tech champion,” Fabricio Bloisi, CEO of Prosus and Naspers group, said in a statement.
“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.”
Yesterday’s takeover announcement coincided with Just Eat’s annual results which revealed a 35% rise in pre-tax profits during 2024 to €460m (£382m) on the back of improvement in its key UK and Ireland markets, and lower costs of fulfilling orders.
Unleashing value
Just Eat also confirmed that its current leadership would remain in place under the agreement while it would continue to be based in Amsterdam.
Commenting on its takeover of Just Eat, Prosus claimed it was well positioned to unlock value beyond the delivery firm’s standalone potential as a listed business.
“Prosus already has an extensive food delivery portfolio outside of Europe and a proven track record of profitable growth through investment in our customer and driver experiences, restaurant partnerships, and world-class logistics, powered by innovation and AI,” said Bloisi.
"We believe that combining Prosus's 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."
Yesterday’s announced takeover is not the first attempt by Prosus to acquire Just Eat.
The Dutch-based internet investor made a failed hostile $6.4 billion bid for Just Eat which was formed in 2020 from a merger between the U.K.’s Just Eat and its Dutch rival Takeaway.com.
While the combined company was a one-time member of London’s FTSE 100 index, with a valuation of nearly $19 billion, it will now only be listed on the Amsterdam stock market, where the company is headquartered.
