The takeover tussle between Takeaway and Prosus for the Just Eat firm is gaining more interest. Prosus PRX.AS is not relenting on its efforts to buy out Just Eat, even as Takeaways Delivery firm is sticking around.
Yesterday, Prosus reiterated its desire to buy Just Eat with a $6.3 billion offer. The offering price still stands, but there is a slight adjustment to the bid proposal.
NPNJn.J, Nasper’s subsidiary, published that Prosus has agreed to lower the acceptance threshold from 90% to 75%. According to Bob Van Dijk, Prosus CEO, financial markets are misjudging the actual cost it requires to implement the transformation Just Eat needs.
He further stated that Just Eat requires good financial outlay to maintain its market position and exploit its long-term growth potential. Prosus intends to offer much for the purchase of Just Eat because the company intends to help Just Eat reach that competitive level it deserves, Van Dijk says.
In line with this, Prosus has offered to buy Just Eat by offering about 710 pence per share or $6.3 billion for the firm.
Shareholders waiting for the right buyer
This is not the first time a company has indicated buying interest on Just Eat. In July, Takeways.com offered $4.7 billion. Since then, its shares have fallen. So, many would see the offering from Prosus a better deal for both parties involved.
However, when Takeway.com made its offer in July, the value of the offered share was way higher than what it is now. Right now, the value of the Takeaway share offer has dropped to 609 pence per share.
And the current market share price of Just Eat (738 pence) showed that investors are seriously hoping that an increased offer from a bigger company is going to happen soon.
Just Eat is holding out on a bigger offer. It insists that the offer from Prosus is below the threshold. Just Eat said the offer is undervalued, considering that the company is still doing well in the market and has an offer from Takeaway.com. It is advising the company’s shareholders to reject the offer.
The takeover battle intensifies
Last week, Takeaway increased its threshold to 75% after changing its proposal to a formal offer. The company is seriously lurking behind to buy Just Eat before Prosus can conclude deals with the firm.
As it stands, Just Eat shareholders could consider Takeaway’s offer if British regulators will accept. As long as the simple majority of shareholders of Just Eat have approved, the company could negotiate with Takeaways, instead of Prosus. Some of the shareholders believe Takeaway’s offer could provide more viable long-term growth for them.
On Monday, Takeaways.com and Prosus each discussed the benefits of their respective bids. Van Dijk informed journalists that, although Takeaway could strive in countries like Germany and the Netherlands, it’s delivery investment would be a failure in London and some other countries.
On the other hand, Jitse Groen, CEO of Takeaway, argued that its proposal would be more beneficial to shareholders in the long-term than Prosus offer.