Just Eat rejects Prosus' £5.1bn offer

Prosus has raised its offer from 710 pence to 740 pence per share, but to no avail.

Just Eat continues to reject Prosus’ bid to acquire the company, despite offering a newly-increased offer of 740 pence per share.

Prosus recently announced its increased offer to acquire Just Eat after the UK-based delivery platform’s board had urged the company’s shareholders to accept the Takeaway merger.

The extended offer now values at approximately £5.1bn which represents 24.6% of Takeaway.com offer of 594 pence per Just Eat Share.

Just Eat, however, sees the improved offer to only represent a premium of only 16% to its undisturbed price of 635.6 pence.

“The Board of Just Eat has now considered the terms of the Prosus Offer and continues to believe that it significantly undervalues Just Eat and its attractive assets and prospects both on a standalone basis and as part of the proposed recommended all-share combination with Takeaway.com,” the board said in a statement.

Prosus’ increased offer came with a reduced acceptance condition to a simple majority of Just Eat shares (50% plus one share) which raised the deal certainty.

“Just Eat is a quality business, which we believe has all the ingredients to be transformed into a long-term sector winner. In recognition of this potential, we have decided to increase our offer to 740 pence per share, which we believe provides Just Eat Shareholders with compelling value and therefore good reason to accept our all-cash offer,” Prosus CEO Bob van Dijk said in a statement.

Prosus has given Just Eat shareholders until 27 December 2019 at 1 p.m. to take on the new offer.