British online delivery platform Just Eat has been advised by its board of shareholders to reject a 710p per share cash offer from Prosus.
Prosus is a spin-off of South African consumer internet group Naspers. In October, it made a £4.9bn offer through its subsidiary MIH Food Delivery Holdings to acquire the delivery platform.
The unsolicited Prosus offer followed Just Eat’s confirmed talks over a possible business takeover with Dutch company Takeaway.com in July this year.
Just Eat agreed to merge with Takeaway.com in a deal that will see the former being acquired for a share price of 731p.
The merger is expected to create the second-largest online food delivery service in the world.
Just Eat is the leading online food delivery service in eight of its 13 markets. In the first half of this year, deliveries made up more than 25% of Just Eat’s orders and 38% of its revenue.
In addition, the company has invested more than £500m since 2016 to develop and acquire technology and software-enabled platforms.
In a Response Circular, Just Eat chairman Mike Evans said: “The Prosus offer of 710p per share is 20% lower than Just Eat’s all-time high share price of 890p and 13% lower than the highest share price over the last six months of 812 pence. Furthermore, the premium that Prosus is offering to Just Eat’s share price before the announcement of the Takeaway.com Combination is just 12%.
“Accordingly, the board unanimously recommends that you should take no action in relation to the Prosus Offer of 710p per share in cash. Instead, the board unanimously recommends that you accept the Takeaway.com offer, either through CREST or complete and return your Takeaway.com form of acceptance for the Takeaway.com combination.”