Prosus crosses first Just Eat hurdle

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Prosus crosses first Just Eat hurdle

Published Date: 2019-12-11 | Source: Stephen Gunnion | Author: Stephen Gunnion

Prosus crosses first Just Eat hurdle

The Spanish Markets and Competition Commission has cleared the acquisition of Just Eat shares by Prosus subsidiary MIH Food Delivery Holdings.

Prosus has crossed the first hurdle in its bid to take over UK food delivery group Just Eat. The consumer internet group says the Spanish Markets and Competition Commission has cleared the acquisition of Just Eat shares by Prosus subsidiary MIH Food Delivery Holdings under the Spanish Competition Act.

Prosus, which was unbundled and listed by Naspers in September, said Spain's approval was an important milestone that further increased deal certainty for Just Eat's shareholders. On Monday, MIH raised its offer to 740p per share from 710p previously, valuing the proposed offer at £5.1 billion. That's a 25.6% premium to Just East Share price on 21 October. It is 24.6% higher than the value of a rival bid from Takeway.com on 21 October, the day before its first offer was made public.

Prosus also reduced the level of acceptances required for the deal to a simple majority of 50% plus one Just Eat shares and extended the closing date for the increased offer to 27 December from 11 December previously. A rival bid by Dutch group Takeaway.com is subject to a 75% acceptance condition and the approval of its own shareholders.

The company went directly to Just Eat's shareholders after failing to receive the backing of its board of directors for its previous offers. Just Eat has rejected the higher bid as it believes it still undervalues the group - both as a standalone business and as part of a merged entity with Takeaway.com. Takeaway.com said the merger with Just Eat would provide Just Eat shareholders the opportunity to share in the significant value creation expected from the merger of the two businesses. In a circular to investors on Monday, it said Just Eat's shares could have an illustrative trading value of up to around £11 under its offer due to a potential re-rating. However, Prosus dismissed this, saying the merger could be highly value destructive.

Prosus rose 0.1% to R971 yesterday while majority shareholder Naspers shed 1.1% to R2,030. In London, Just Eat gained 0.1% to 781.6p.





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