Less than half a ‘fair’ price, a minority shareholder in the food delivery company said in a public statement aimed at disrupting the €4.1bn ($4.3 billion) deal.
Prosus NV’s offer for Just Eat Takeaway.com is less than half a “fair” price, a minority shareholder in the food delivery company said in a public statement aimed at disrupting the €4.1 billion ($4.3 billion) deal.
Paris-based BDL Capital Management, which holds about 2.18% of Just Eat’s shares, said the offer price of €20.30 per share is “far below a reasonable and fair valuation” for the Amsterdam-based company, in a statement Wednesday.
A reasonable target price for the company is in the range of €56.1 per share, the asset manager said in a 33-page memo published on its website. It cited valuation multiples from previous deals and other listed food delivery peers. The asset manager’s proposed offer price would value Just Eat at €11.7 billion, 176.4% higher than the agreed deal, according to Bloomberg calculations.
In February, Prosus agreed to buy Just Eat in an all-cash deal valuing the company at €4.1 billion, saying it plans to create a dominant force in European food delivery. The deal is expected to be completed by the end of the year.
Amsterdam-based Just Eat Takeaway.com operates in 17 international markets, connecting 61 million customers with more than 356 000 local partners.
Prosus already holds a 28% stake in leading food delivery company Delivery Hero, 4% of Chinese food delivery company Meituan, and 25% of Indian online food company Swiggy.
Just Eat said Prosus “made a compelling offer representing an attractive cash premium” to its shareholders, in an emailed statement.
Source: Moneyweb
