(Alliance News) - Takeaway platform Just Eat PLC reaffirmed its backing for its planned merger with Takeaway.com NV on Tuesday, rejecting an offer from Prosus NV.
Earlier Tuesday, Amsterdam-listed Prosus made a GBP4.9 billion cash bid for Just Eat, offering shareholders an alternative to the UK online food delivery platform's all-share merger with Takeaway.com NV, also Dutch listed.
"The board of Just Eat has considered the terms of the Prosus offer and believes it significantly undervalues Just Eat and its attractive assets and prospects both on a standalone basis and as part of the proposed recommended all-share combination with Takeaway.com. Accordingly, the board of Just Eat unanimously recommends that shareholders reject the Prosus offer," said Just Eat.
Prosus made three bids, Just Eat said, at 670p, 700p, and finally 710p, but all of them have been rejected.
"The board believes that the Takeaway.com combination provides Just Eat shareholders with greater value creation than the terms of the Prosus offer. Accordingly, the board of Just Eat continues to recommend the Takeaway.com combination to Just Eat shareholders," Just Eat continued.
Prosus Chief Executive Bob van Dijk had earlier said Prosus had been unable to constructively talk with the Just Eat board.
Prosus, majority-owned by South African media and technology investor Naspers Ltd, said its 710p bid is a 20% premium to Takeaway.com's own offer of 594p per share and a 20% premium to Just Eat's closing price in London on Monday.
Just Eat shares were 24% higher on Tuesday morning in London at 731.80p. Prosus was down 0.1% at ZAR1,086.52 in Johannesburg but 0.5% higher in Amsterdam at EUR66.37. Takeaway.com was up 4.2% at EUR74.00.
In August, Takeaway.com and Just Eat proposed an all-share combination to create one of the largest food delivery companies in the world with a market capitalisation around EUR10 billion and processing orders worth over EUR7 billion per year.
Prosus, which already owns food delivery businesses such as Delivery Hero and Swiggy, said the proposed merger with Takeaway.com would not be able to bring in the investment needed. Further, Prosus said, its bid is an all-cash option for Just Eat shareholders.
Prosus joined the Amsterdam and Johannesburg stock exchanges in September after South African media giant Naspers spun off its international internet assets. Naspers still owns 74% of Prosus.
Naspers shares were broadly flat at ZAR2,288.40 each.
By George Collard; georgecollard@alliancenews.com
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