UK’s Just Eat In Deal To Sell Stakes To Prosus For $1.8 Billion

Just Eat Takeaway.com NV on Friday said it is selling its remaining 33% stake in the iFood joint venture to Amsterdam-based technology investor Prosus NV. 

This will make Prosus the sole owner of Brazil-based delivery platform iFood. 

The acquisition is worth up to EUR1.8 billion. “The consideration represents an equity multiple of over 5 times on the investments over the life of the joint venture,” Just Eat highlighted.

“The contingent consideration may become payable if the food delivery sector re-rates on a GMV and gross profit multiple basis over the next twelve months,” said Prosus.

As part of the transaction, Just Eat will buy IF-JE Holdings BV’s 49% interest in El Cocinero a Cuerda SA for no additional consideration.

El Cocinero a Cuerda is a holding company of Sindelantal, a restaurant delivery app run by iFood, that ceased its operational activities in December 2020. 

Prosus said: “The transaction is consistent with Prosus’ strategy to invest where it has high conviction, and is a natural next step in the long-standing relationship between Prosus and iFood. Prosus believes this represents a great opportunity to secure full ownership of a high performing, cornerstone asset in the attractive Brazilian Food Delivery sector.”

Just Eat said the deal needs shareholder approval, and believes the sale to be in the best interests of the firm.

“Just Eat Takeaway.com remains focused on improving its profitability and on a disciplined allocation of capital. It will retain the transaction proceeds to maintain its balance sheet strength and to service repayments of its upcoming debt maturities,” Just Eat said.

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