The chief executive of Takeaway.com has said the company does not intend to increase its £4.3bn bid for food delivery app Just Eat, despite South Africa’s Prosus tabling a larger, unsolicited offer.
Jitse Groen said he would not sweeten the bid for Just Eat in a bidding war with Prosus, which has made a cash offer of 710p per share that values Just Eat at around £4.9bn.
Groen said a tie-up between Takeaway.com and Just Eat would create more value in the long run.
Takeaway.com set out its pitch for UK business Just Eat this morning, saying it would introduce Takeaway.com’s branded delivery service in Britain and merge the two platforms’ IT systems to save on costs.
“The combination is the new Booking.com, for investors that is the thing to think about,” he told Reuters, referring to the online service that grew to dominate its sector by offering the largest selection of hotels and an easy-to-use ordering app.
He added that the deal has a lot of support among shareholders.
Prosus responded to the Takeaway.com statement this morning by saying the company underestimates “the level of investment required in a sector that is changing rapidly”.
It said: “Just Eat requires substantial investment in technology, product, marketing and own-delivery to capture its long-term opportunity.
“With our global experience, we are best placed to support Just Eat with this transformation, and ours is the only offer that provides the certainty of cash to shareholders at attractive and fair value.”
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