Just Eat Takeaway raises €1.1bn in convertible bonds offering
It follows three consecutive quarters of order growth acceleration.
Amidst a delivery boom due to pandemic-induced restrictions, Just Eat Takeaway said it raised €1.1 billion in a convertible bonds offering to strengthen its balance sheet and the flexibility to “act on strategic opportunities which may arise.”
The bonds are made up of two tranches with an aggregate principal amount of €600 million due in August 2025 and another amount of €500 million due February 2028.
The announcement follows three consecutive quarters of order growth acceleration, which the company attributes to “Covid-19 tailwinds” and “significant investments” in legacy markets.
The food delivery giant also looks to complete its acquisition of US rival GrubHub, announced last June.
Just Eat Takeaway clarified it would not use the latest bond money to raise its GrubHub takeover offer, but does intend to use the money for the payment of transaction costs for the GrubHub deal and the potential funding requirements for the company’s stake in Brazillian food delivery company iFood.
It also plans to sell its stake in iFood once it reaches what it deems “a fair value”. Timing of a potential sale and monetisation remains unknown.
Just Eat Takeaway is due to present its Q4 and full-year 2020 earnings report on 10 March.
