AMSTERDAM (Reuters) – Takeaway.com said on Wednesday that its offer for Britain’s Just Eat, which is backed by Just Eat’s boards despite a higher bid from larger rival Prosus, presented a compelling opportunity for both companies.
“Takeaway continues to believe that the combination has compelling strategic rationale and represents an attractive opportunity for both Just Eat and Takeaway.com,” Takeaway said in a statement. It said plans for the merger include introducing Takeaway’s branded delivery service in Britain and combining the companies’ IT systems to save on costs.
Takeaway.com’s CEO Jitse Groen is due to address investors at a conference in Barcelona later on Wednesday.
Prosus’s cash offer of 710 pence values Just Eat at around $6.3 billion (4.9 billion pounds) and is currently 12% higher than Takeaway’s all-share offer of 629 pence. Just Eat shares closed at 735 pence on Tuesday, a signal investors believe a higher offer from one of the bidders is likely.
Our “strategic changes are expected to incur costs in the tens of millions of euros per year, but are expected to reposition Just Eat Takeaway.com for long-term growth and profitability, restore a healthy mix between marketplace and logistics, strengthen its competitive position and should result in increasing revenue,” Takeaway said.
The costs of introducing the service would have a “limited impact expected on the bottom line due to the expected increasing revenue,” Takeaway said.
Prosus has argued its deal offers Just Eat shareholders more certainty, and that it is prepared to invest heavily in Just Eat to defend its market positions after the takeover.
(Reporting by Toby Sterling; Editing by Susan Fenton)