Cat Rock Capital joins Just Eat board's call to accept Takeaway merger, cites possible value pick up
The investor claims the combined company can be worth over 1,200p per share by the end of 2020.
A US-based investment firm has taken the side of Just Eat’s board in urging fellow shareholders to accept the Takeaway.com merger, said the combined company could be worth by 1,200 pence per share by the end of 2020.
Cat Rock Capital owns 17.7 million shares of Just Eat common stock representing approximately 3% of the UK-based delivery platform’s outstanding shares, as well as owns 3.5 million shares of Takeaway.
“A Just Eat merger with Takeaway.com would create a formidable global leader with significant growth prospects and world-class management,” Cat Rock Capital founder and managing partner Alex Captain said in an open letter to fellow Just Eat shareholders.
He stressed that a Just Eat standalone “represent highly unattractive alternatives” for shareholders.
“By pursuing a standalone option, Just Eat shareholders would continue the status quo that has led to underperformance and market share loss.”
As Prosus maintained that Takeaway merger posed “a significant risk” to Just Eat’s operations, Cat Rock claimed that Prosus “significantly undervalues” the delivery platform and “shares none of the future potential of the business with Just Eat shareholders.”
“Prosus has a strong incentive to overstate the challenges facing Just Eat, and we deeply disagree with their characterizations of both Just Eat and Takeaway.com,” he added.
Earlier, the Board of Just Eat unanimously rejected Prosus’ 710 pence per share offer, which came upon advisement from Goldman Sachs, Oakley Advisory and UBS.
