Daily Management Review

Just Eat Backs Takeaway's Final Offer As An End For The British From Seems Ending


The 5.5 billion pound ($7.2 billion) all-share acquisition offer made by Takeaway.com as its final offer for the British company Just Eat has got the backing of the British firm on Friday, Just Eat said. The company also added that the acquisition could create a large enough entity in the online food delivery industry that could challenge the leaders. Just Eat also said that the Takeaway.com offer was a more compelling one compared to the one from the rival cash bid from Prosus.
Their bids for the British company was raised by both Takeaway and Prosus a day ago in which the all-share offer from Amsterdam-listed Takeaway was more alluring for Just Eat than the 800 pence a share bid by Prosus at its current stock price.
“The board of Just Eat continues to believe that the combination with Takeaway.com is based on a compelling strategic rationale that allows shareholders to participate in the upside potential of the enlarged group,” Just Eat said.
Valid acceptances and commitments from the holders of 46% of Just Eat’s equity has been received by Takeaway which is now close to the 50 per cent plus one share that is requires to get the acquisition through.
Prosus said it was not planning to buy shares in the market, which indicates that the favourite for the deal is Takeaway.com.
“We have always stated that we would remain disciplined with respect to price on acquiring Just Eat,” Prosus CEO Bob van Dijk said. He noted that the company needed to strike a balance between the future needs of investments in the company and generating acceptable returns for the shareholders.
The bid for the British firm was further enhanced by Takeway by its offer of giving the shareholders of Just Eat about 57.5 per cent of the new entity after the acquisition which meant offering 916 pence value for each Just Eat share according to the closing share price of 88.90 euros of Takeaway on Wednesday.
Since that bid, there has been a drop in the share prices of Takeaway. However the 78 euro level they were trading at on Friday still puts its bid slightly ahead of Prosus, with an implied value of 803 pence a share.
Takeaway’s shares would need to fall below 77 euros for its implied offer to fall below Prosus, analysts at Barclays said.
Is share prices could be supported by a “reasonably positive” trading comments in its final bid document, they said while the stock could come under some pressure.
Both the companies making their final bid for the British firm has helped them to avoid participating in an auction soon after Christmas.
Shareholders in Just Eat have until Jan. 10 to accept either offer, while Takeaway’s shareholders will vote on Jan. 9.
Just Eat said the holding company of founder and CEO Jitse Groen, which has a 25% stake, and the company’s managing directors had pledged to support the deal.

Science & Technology

Live Facial Recognition Cameras Will Be Used By London Police

Driverless Vehicle For Its Ride-Sharing Service Unveiled By GM’s Cruise

Amazon will allow customers to pay with palms instead of cards

Complete Computer System For Self Driving Cars Launched By Qualcomm

In A Lifetime We Could Accumulate 20Kg Micro-Plastic In Our Body

Creator Of The First 'Gene-Edited' Babies Of The World Gets 3 Year Jail Term In China

China to deploy giant Beidou global navigation system in 2020

VW Zwickau factory is getting ready for electric cars production

Airbus: Passenger hybrid aircraft to take off before 2035

Ocado To Introduce ‘Mini Robotic Warehouse’ With Standard Productivity

World Politics

World & Politics

French tour operators will stop sending tourists to China until February 21

US Will Not Give Visas To Pregnant Women To Prevent Organized 'Birth Tourism'

Heads of the European Council and European Commission sign Brexit agreement

UK adds Greenpeace, PETA to extremist organizations list

Indonesia, UAE sign nearly $23B deal

US to respond to Iran’s attacks on US bases in Iraq

Irish Passport issues hit record in anticipation of Brexit

Reporters Without Borders calls to release Julian Assange