LONDON (Alliance News) - Online takeaway delivery company Just Eat PLC on Wednesday said it has sold hellofood Brazil to its iFood joint venture.
In addition, Just Eat has sold a 49% stake in its enlarged Mexico business, formed of SinDelantal and hellofood Mexico, also to IF-JE. Just Eat will retain the remaining 51% stake.
IF-JE is a joint venture with Brazilian IT company Movile, in which Just Eat holds a 30% stake.
Just Eat received USD11 million for both transactions and said it will also receive benefit of services provided by local IF-JE management in Mexico.
"The iFood joint venture in Brazil has been a huge success for Just Eat and has enjoyed impressive growth since it launched in 2014, thanks to its intimate understanding of local markets and strong track record of executing against its strategy," Chief Executive David Buttress said in a statement.
"These transactions with iFood will create additional volume and scale that will generate significant benefits in these markets. They will provide the perfect platform for iFood to expand further in the largest and most exciting markets in Latin America, creating real value for Just Eat and its shareholders," he added.
Shares in Just Eat were trading up 0.4% at 472.60 pence on Wednesday morning.
By Karolina Kaminska; firstname.lastname@example.org @KarolinaAllNews
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