Prosus sweetens offer for Just Eat, 9 Dec 2019 10:17

Marco Green
December 10, 2019

In October, the Euronext and JSE-listed tech giant made a bid of 4.9 billion pounds ($6.35 billion or R94 billion) or 710 pence a share, in cash for Just Eat.

However, analysts say that must now put something new on the table after the latest offering from Prosus - which is owned by South African media titan Naspers.

"In recognition of this potential, we have made a decision to increase our offer to 740 pence per share, which we believe provides Just Eat Shareholders with compelling value and therefore good reason to accept our all-cash offer", Prosus' chief executive, Bob van Dijk, said.

Just Eat shares were trading at 780.60p each on Monday morning, up 0.5% on Friday's close.

"A slightly higher derisory cash bid remains a derisory cash bid", Groen said.

In a statement noting today's move by Prosus, Just Eat said its board is now reviewing the increased offer and advised shareholders to take no action at this time.

Bob van Dijk, chief executive of Prosus, said: "Following the announcement of our offer, we have had the opportunity to listen to the views of Just Eat Shareholders, share our perspective on the global food delivery sector and reflect on the unquestionable challenges Just Eat faces, as clearly seen in its third quarter results".

In effect, Prosus is saying that its improved offer provides a more certain and clean exit for shareholders while the all-share offer, now worth 710p, is subject to the variability of the Dutch firm's share price.

Prosus reduced the level of acceptances required from 75% to a simple majority (50% plus one Just Eat share).

"This revised Prosus offer is wholly inadequate and shows Just Eat shareholders that Prosus can not muster a credible bid", said Alex Captain, founder and managing partner of Cat Rock. The new proposal gives Just Eat investors certainty of value while allowing Prosus to target appropriate returns for its shareholders, the company said.

A spokesman for declined to comment. The food delivery market is an increasingly crowded space, including Uber Eats and Deliveroo among others to contend with.

"If it succeeds, it will keep Just Eat's value creation potential for itself". was swift to respond, claiming its all-share offer was still "far superior".

Other reports by Click Lancashire

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