Takeaway.com has launched a formal takeover offer for Just Eat PLC (LON:JE.), switching from its previous proposal for an all-share merger as it tries to compete with a cash bid from South Africa’s Prosus.
Just Eat and Dutch group Takeaway.com agreed to a combination in August, but shareholders in the London-listed company were left nursing paper losses due to a drop in the Amsterdam company’s share price.
Then last month, Prosus, recently spun out of South African e-commerce giant Naspers, launched a 710p cash offer for Just Eat, valuing the business at GBP4.9bn.
On Monday, Takeaway.com said it was now making an offer for Just Eat, where it will require acceptance from investors in 75% of the shares.
It said this “will provide Just Eat’s shareholders with increased deal certainty”.
Jitse Groen, CEO of Takeaway.com, said: “We believe that the Just Eat Takeaway.com combination offers its shareholders a future value far superior to both Just Eat and Takeaway.com separately, and to the recent cash offer made by Prosus in particular. With this switch, we provide additional deal certainty to the Just Eat shareholders.”
Just Eat’s board of directors, which rejected the Prosus bid, said it “unanimously recommends” that their shareholders accept this new offer.