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Just Eat rejects improved hostile bid from Prosus

British online takeaway delivery service Just Eat on Tuesday rejected as too low an improved hostile takeover bid from Europe’s largest consumer-tech company Prosus.

Just East said in a statement that it wished instead to pursue its merger with peer Takeaway.com, under a deal which it added would enhance its value.

“The board of Just Eat has now considered the terms of the Prosus offer and continues to believe that it significantly undervalues Just Eat and its attractive assets and prospects both on a standalone basis and as part of the proposed recommended all-share combination with Takeaway.com,” it said in a statement.

“Accordingly, the board of Just Eat unanimously recommends that shareholders reject the Prosus offer.”

Prosus had Monday lifted its bid to £7.40 per share or £5.1 billion ($6.7 billion, 6.07 billion euros), up from £7.10 per share or £4.9 billion.

London-listed Just Eat provides an online website and app to enable customers to buy food from their local takeaway restaurants, taking a cut from delivery orders.

Just Eat and Takeaway.com of the Netherlands unveiled in July a plan to join forces to create a heavyweight in the rapidly-growing food delivery sector.

The combination of the two firms would create a delivery platform worth around $11 billion capable of competing against Britain-based Deliveroo and Uber Eats of the United States.

But the deal has been thrown into question by Prosus, which is owned by South African media titan Naspers.