Just Eat Takeaway starts arbitration proceedings against Delivery Hero
This comes almost two months after the creation of the merged company.
Newly merged online food delivery company Just Eat Takeaway said it had started arbitration proceedings against shareholder and rival Delivery Hero.
It alleges that Delivery Hero broke a standstill undertaking when the company announced plans to purchase shares in the enlarged business last February.
Takeaway initiated the arbitration with the International Chamber of Commerce, a business group with members in more than 100 countries that also handles corporate disputes.
2018 saw Takeaway agreeing to buy Delivery Hero’s German operations for about 930 million euros (US$1.03 billion) in cash and shares, giving the firm an approximately 18% stake in its Dutch rival.
As part of the deal, Delivery Hero then entered into a standstill agreement, promising not to increase its exposure for four years, with certain exceptions to prevent dilution.
During Takeaway’s negotiations for Just Eat last year, Delivery Hero sold about 3 million of its Takeaway shares, which hurt the stock price and lowered the value of its bid.
Photo credit: Takeaway.com Facebook
