Prosus increases hostile takeover bid for Just Eat

Mark Johnson's picture

The battle for ownership of UK food delivery giant Just Eat is turning into a hostile bun fight as European tech firm Prosus increases its bid to just over £5bn.

Prosus, which is owned by investment firm Naspers, on Monday increased its offer for Just Eat to £5.05bn, as it  attempts to steal the firm away from a previously agreed merger with dutch firm Takeaway.com 

The offer works out at about £7.40p per share or 4.5% more than to previous offer from Takeaway.com.

Jitse Groen, the founder and CEO of Takeaway.com, sent a letter to shareholders on Monday 9 December, pleading with them to stick with the earlier agreed takeover offer, reached in august this year.

“Unfortunately, Prosus is attempting to derail the Combination and instead buy your company with a hostile, low-ball cash offer of 710 pence per share which it announced on 22 October 2019” Groen said. 

“If it succeeds, it will keep Just Eat's value creation potential for itself.

“The Just Eat Board has recommended that you back the Combination, accept the Takeaway.com Offer and reject the Prosus Offer.”

Just Eat's shares were up half a percent at £7.80 on the London Stock Exchange on Monday morning.