logo-loader
viewJust Eat PLC

Just Eat rejects increased Prosus bid

Just Eat’s management unanimously recommended shareholders take no action in regards to the new 740p per share offer, which was unveiled on Monday

Just Eat PLC - Just Eat rejects increased Prosus bid

Just Eat PLC (LON:JE.) has rejected an increased off for the firm by investment manager Prosus in a favour of its plans to marge with Dutch rival Takeaway.com.

Prosus increased its hostile cash offer for the group on Monday to 740p per share while also reducing the acceptance threshold to 50% in an effort to push the bid through.

READ: Prosus ups offer for Just Eat and drops acceptance threshold to 50%

The new offer is 4% higher than Prosus’s original bid and values Just Eat at £5.1bn or around 5% more than the terms of rival Takeaway.com’s proposed merger.

In a statement on Tuesday, Just Eat’s management unanimously recommended shareholders take no action in regards to the new offer, reiterating their previous argument that the Prosus bid “significantly undervalues Just Eat and its attractive assets and prospects”.

The company also highlighted that the bid represented a 5% discount to its close price on Friday, as well as a premium of only 4% of Prosus’ original offer.

Broker sceptical either bid will succeed

While Just Eat’s management are trumpeting the benefits of the all-share merger with Takeaway.com instead of the Prosus bid, analysts at Liberum are sceptical that either of the offers will pass muster with investors.

In a note slashing the company’s target price to 870p from 1,360p, analysts said they expected “a further improved bid to emerge” from Prosus as they did not think the current offering would reach the reduced 50% threshold.

However, they did not expect Prosus to give up on its efforts, instead predicting the firm will respond with a higher bid in the future.

Liberum also saw a similarly negative outcome for the Takeaway.com merger, citing “expressed negative sentiment” around the deal from two of Just Eat’s institutional shareholders, Eminence Capital and Aberdeen Standard, as key stumbling blocks.

Just Eat shares were flat at 781.4p in mid-morning trading.

Quick facts: Just Eat PLC

Price: 865.6 GBX

LSE:JE.
Market: LSE
Market Cap: £5.91 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Immotion plans fundraising following deal with Las Vegas resort

Immotion Group (LON:IMMO) has raised gross proceeds of £2.85mln from an 'oversubscribed' fundraising to accelerate its growth plans, and revealed it has inked a revenue-sharing deal with the MGM Mandalay Bay resort and casino in Las Vegas. CEO Martin Higginson tells Proactive London what the...

2 days, 15 hours ago

RNS

Rule 2.9 Announcement

2 days, 13 hours ago

Form 8.3 - JUST EAT PLC

2 days, 14 hours ago

Update on expected timetable

2 days, 23 hours ago

Expected Timeline

4 days, 23 hours ago

Form 8.3 - JUST EAT plc

5 days, 17 hours ago

Form 8.3 - JUST EAT plc

6 days, 15 hours ago

2 min read