The board of Just Eat has backed a final offer from Takeaway.com and rejected a rival cash bid from Prosus, as the battle for the British fast food giant nears its end.
The food fight for Just Eat heated up once again yesterday after both Takeaway and Prosus increased their bids for the company.
But In a statement today, the Just Eat board rebuffed Prosus’s cash bid, saying that an all-share merger with Takeaway would create one of the world’s leading food delivery companies and would “deliver greater value” to shareholders.
“The Board of Just Eat continues to believe that the combination with Takeaway.com is based on a compelling strategic rationale that allows shareholders to participate in the upside potential of the enlarged group,” it said in a statement.
Takeaway’s newly-raised offer would involve an all-share merger with Just Eat worth 916p per share, compared to a previous offer of 731p
The Dutch company also proposed increasing Just Eat shareholders’ stake in the newly-formed group from 52 per cent to 57.5 per cent.
Takeaway increased its bid after South African firm Prosus surprised the City yesterday by revealing a final all-cash offer worth 800p per share.
Prosus had previously made offers worth 710p and 740p per share.
The Just Eat board has previously backed Takeaway.com’s bids for the company, and reiterated that stance following yesterday’s bidding war.
“The board of Just Eat unanimously believes that Just Eat shareholders should accept the final Takeaway.com offer and reject the final Prosus offer,” it said.
Takeaway.com has secured acceptances from just over 46 per cent of Just Eat shareholders.
The acceptance threshold for both offers is 50 per cent, and shareholders have until 10 January to vote on the proposals.
Just Eat’s shares fell 1.26 per cent in morning trading.