- Shares jump 54% on all-cash takeover
- Delivery Hero and Deliveroo shares gain
- Further consolidation expected
European food delivery giant Just Eat Takeaway.com (TKWY:AMS) saw its shares jump 53% after agreeing a €4.2 billion takeover by Dutch technology investor Prosus (PRX:AMS) pitched at €20.3 per share in cash.
The proposed takeover, which has the unanimous backing of management, represents a 63% premium to Just Eat's prior closing price.
In early trading the shares were trading at fresh two-year highs of €19 with the excitement spilling over into peers Delivery Hero (ETR:DE) and Deliveroo (ROO), whose shares gained around 7% apiece, while Prosus sank 8% to the bottom of the Stoxx 600 index.
Prosus is majority-owned by South African-listed Naspers (NPN:ZA), which also holds a 28% stake in German-listed Delivery Hero.
BUILDING A EUROPEAN CHAMPION
Prosus chief executive Fabricio Bloisi commented: ‘We are very excited for Just Eat Takeaway.com to join the Prosus group and the opportunity to create a European tech champion.
‘We believe that combining Prosus’ strong technical and investment capabilities with Just Eat Takeaway.com’s leading brand position in key European markets will create significant value for our customers, drivers, partners, and shareholders,’ enthused Bloisi.
Just Eat delisted from the London Stock Exchange in 2024 to reduce costs and the administrative burden associated with the dual listing.
Chief executive Jitse Greon welcomed the combination with Prosus saying: ‘Prosus fully supports our strategic plans, and its extensive resources will help to further accelerate our investments and growth across food, groceries, fintech and other adjacencies.’
The company also announced a 36% increase in 2024 core profit driven by an improvement in the UK and Ireland. Europe’s biggest food delivery firm is forecasting 4% to 8% growth in gross transaction value for 2025, excluding the Rest of the World segment.
MORE CONSOLIDATION TO COME
AJ Bell investment director Russ Mould believes there is a big appetite for further consolidation in Europe for online food delivery: ‘It’s all about gaining scale. Just Eat has had its fair share of bites at the cherry, and now the tables have turned, and it is being gobbled up.
‘Prosus has its fingers in many pies for the online food delivery sector, owning Brazilian platform iFood, and minority stakes in the likes of Delivery Hero, Meituan and Swiggy.
‘Adding Just Eat to its stable would give Prosus a much stronger position in Europe and an opportunity to apply its technological advancements to a business that has found life a lot harder since the pandemic ended,’ added Mould.
Disclaimer: Financial services company AJ Bell referenced in the article owns Shares magazine. The author (Martin Gamble) and the editor (Ian Conway) own shares in AJ Bell.
