Latest Prosus Offer Snubbed By Just Eat

Latest Prosus Offer Snubbed By Just Eat

Just Eat has once again turned down an offer from Netherlands-based Prosus, saying the deal still “significantly undervalues” the company, the Financial Times (FT) reported on Tuesday (Dec. 10).

Prosus, an arm of South African internet giant Naspers, upped its cash offer to a bit more than £5 billion ($6.6 billion) – £740 per share, up £30 over its last bid. In October, Just Eat rejected a Prosus takeover proposal worth £4.9 billion.

Just Eat said in a statement that it “believes that the [offer] fails to appropriately reflect the quality of Just Eat and its attractive assets and prospects, the benefits of first-mover advantage in a consolidating sector, and the significant future upside available to Just Eat shareholders through remaining invested in Just Eat and the combination.”

The Dutch-listed Takeaway values Just Eat at around £691 per share at current exchange rates, the FT calculated.

Cat Rock, a capital management firm that has a 2.6 stake in Just Eat and a 5.9 percent stake in, said Prosus should a minimum of £925 per share.

“We have been Just Eat shareholders for over two and a half years, and we are deeply committed to helping Just Eat realize its great potential,” Alex Captain, founder and managing partner of Cat Rock, said in a press release.

Cat Rock created a public presentation on the proposed merger between Just Eat and

Standard Life Aberdeen, which holds a 5.2 percent stake in Just Eat, said it would only support a second bid that was 20 percent higher.

Launched in 2001, Just Eat delivers food in 13 countries, including Australia, Canada, Mexico and Brazil. The company agreed in July that it would merge with in a £9 billion deal.

Prosus has stakes in several other food delivery companies, including iFood in Latin America, Swiggy in India and Delivery Hero in Europe. Last month, Just Eat asked its shareholders to hold off on approving an offer from Prosus, saying they should accept a smaller deal from instead.