Subscribe Login

Just Eat Rejects Raised Offer From Prosus

By Donna Ahern
Just Eat Rejects Raised Offer From Prosus

Just Eat rejected a raised takeover offer from Dutch-based technology group Prosus on Tuesday because it significantly undervalued the company and said it continued to back a rival all-share offer from

Prosus, a spinoff of South Africa's Naspers, raised its bid for the British food delivery company to 740 pence a share from 710 pence on Monday.

Just Eat said the increased Prosus offer was only 16% higher than its share price of 635.6 pence in July before said it was in talks about combining with the group, and was 5% lower than its share price on Friday.

'Failed to Reflect'

Just Eat said the higher Prosus offer failed to reflect the quality of the company, the benefits of first mover advantage in a consolidating sector and the upside available to shareholders through remaining invested in Just Eat and the combination.

"The board unanimously recommends that shareholders reject the Prosus offer of 740 pence per share and continues to believe that the combination is based on a compelling strategic rationale that allows shareholders to participate in the upside potential of the enlarged group," it said.

News by Reuters, edited by Checkout. Article by Donna Ahern. Click subscribe to sign up for the Checkout print edition.

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.