Just Eat Takeaway.com has been sold to South Africa’s Prosus for €4.1 billion, post its exit from the London Stock Exchange. This all-cash deal values shares at €20.30, reflecting a 22% premium. The acquisition represents an effort by Prosus to strengthen its position in the European technology and food delivery market, following Just Eat’s struggles post-COVID.
Just Eat Takeaway.com has been acquired by Prosus, the South African internet investor, for €4.1 billion, only two months after departing from the London Stock Exchange. The transaction follows Prosus’s earlier interest in the company when it attempted to take over the British segment in 2019. The acquisition, valued at €20.30 a share, presents a 22% premium from Just Eat’s three-month high, but significantly less than its peak valuation exceeding €100 in 2020.
Operating as a combined entity since 2020, Just Eat Takeaway.com faced challenges despite a brief valuation surge during the COVID-19 pandemic due to increased reliance on food deliveries. However, poor investment strategies have left the company struggling, especially after the costly GrubHub acquisition, which was sold at a fraction of its purchase price. The firm’s de-listing from the London Stock Exchange aims to trim operational costs.
Prosus CEO Fabricio Bloisi stated that the acquisition presents a significant chance to foster a robust European technology leader. Notably, Prosus holds a diverse portfolio in the food delivery space, with significant stakes in Delivery Hero and other global platforms. They plan to employ successful strategies, like those previously used at their Brazilian investment, iFood, to enhance productivity at Just Eat.
Just Eat operates with solid cash-generating capabilities and substantial growth potential in various European markets, including the UK, Germany, and the Netherlands. CEO Jitse Groen emphasized the company’s improved growth trajectory and profitability following the acquisition, underscoring that Prosus’s resources would bolster their expansion strategy across multiple sectors, including food and fintech.
The acquisition of Just Eat Takeaway.com by Prosus for €4.1 billion marks a crucial step in consolidating the European food delivery market. Despite past challenges, the merger is poised to provide the necessary resources for significant growth and profitability. Prosus aims to leverage its extensive industry experience and apply successful operational strategies to enhance Just Eat’s market performance. By integrating advanced technologies and expanding its portfolio, Prosus hopes to establish Just Eat as a leading European player in the food delivery sector. This acquisition highlights the ongoing evolution and competitive dynamics of the global food delivery industry.
Original Source: www.theguardian.com
