Prosus increases cash price offer for Just Eat

Netherlands-based tech giant puts pressure on rival bidder takeaway.com

                                

Dutch-based technology giant, Prosus has raised its cash offer for Just Eat to $6.5 billion (£5bn, €5.8bn), putting pressure on rival bidder Takeaway.com.

Prosus has increased its offer to 740 pence per share from 710 pence, about 5 per cent higher than a rival all-share deal from Takeaway.com, which has the backing of the board of Just Eat.

The new offer values Just Eat at £5.1bn, £200m more than Prosus’s previous offer. Takeaway.com's offer is worth about £4.7 billion.

Prosus also lowered its acceptance threshold for Just Eat shareholders to 50 per cent plus one share from 75 per cent previously, and has extended its offer period through to December 27.

Prosus said that although the new offer is only slightly higher than Takeaway.com’s, it is still around 25 per cent above the level where Just Eat shares were trading before it entered the bidding in October.

Both sides are due to report on how many shares their offers have won by 12 December. If neither has emerged as a winner, Britain’s Takeover Panel (the regulatory body on takeovers for the UK) will start an auction process beginning December 27.

Takeaway.com CEO Jitse Groen has urged Just Eat shareholders to accept his company’s offer.

Just Eat’s shares have been trading above both offers. The stock rose 5.8 pence to 782.8 pence at around 11am. Takeaway shares fell 2.4 per cent and Prosus declined 0.2 per cent in Amsterdam.

Further reading: Just Eat faces hostile bid after it rejects £4.9 bn offer from Prosus

Further reading: Prosus lowers shareholder approval threshold in Just Eat bid

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