(Alliance News) - Takeaway.com NV on Monday reiterated its support for its proposed all-share merger between with fellow food ordering platform Just Eat PLC, following the rebuffed offer for Just Eat from Amsterdam- and Johannesburg-listed Prosus NV.
"Given the circumstances, I can fully understand that the current cash values of both our and the competing offer aren't particularly appealing to the Just Eat shareholders, and seem to be quite far removed from the fair value of Just Eat. We do however believe that the agreed merger ratio between Just Eat and Takeaway.com is appropriate," said Takeaway.com Chief Executive Officer Jitse Groen.
"It brings together strong and adjacent market positions and provides Just Eat shareholders the opportunity to share in the significant value creation which would be expected from the merger of these two market leaders," Groen added.
Earlier Monday, Prosus posted its offer document to shareholders in Just Eat, setting the first closing date for the GBP4.9 billion offer at December 11.
In addition, Prosus reduced the level of acceptances needed to satisfy the acceptance condition to 75% of Just Eat shares from 90% previously.
Prosus first made the offer in October, which was rejected by Just Eat.
The UK company said Monday it continued to believe that the Prosus offer "significantly undervalues" the company on both a standalone basis and as part of the proposed merger with Takeaway.com.
As a result, Just Eat once again recommended that shareholders reject the offer by Prosus.
Shares in Just Eat were down 0.3% at 736.00 pence on Monday in London. Prosus shares were down 1.2% at EUR62.41 in Amsterdam, and 0.1% lower at ZAR1,024.05 in Johannesburg.
Takeaway.com shares were up 2.5% at EUR75.05 in Amsterdam.
By Dayo Laniyan; dayolaniyan@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.
