|Bid||128.50 x 0|
|Ask||131.50 x 0|
|Day's Range||130.00 - 132.00|
|52 Week Range||103.43 - 216.00|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Sep.11 -- Naspers Ltd. Chief Executive Officer Bob van Dijk discusses the company's new Dutch listing Prosus NV in an interview in "Bloomberg Markets: European Open."
will allow the food delivery pioneers to see off new competition from Uber and Deliveroo, as he tries to rally support from investors in the face of a rival bid from Naspers. Jitse Groen, who founded Amsterdam-based Takeaway 20 years ago, said there is “no proof” that companies that rely on their own delivery network for the majority of their orders can ever turn a profit. as a rival bidder for Just Eat last month, Mr Groen sought to reassure investors that the experience of the Takeaway management team could withstand well-funded rivals such as Deliveroo.
(Bloomberg Opinion) -- Tuesday’s dramatic hostile counter-bid for the British internet takeout company Just Eat Plc arrived almost fully baked. The assailant, the European offshoot of South African tech giant Naspers Ltd, is throwing the prospect of cash at Just Eat’s shareholders to persuade them to ditch an all-share merger deal with Dutch rival Takeaway.com NV.The new offer isn’t that tempting. It needs a big dollop of dessert to make it irresistible.Naspers listed the bid vehicle, Prosus NV, in Amsterdam last month and analysts had expected it to gatecrash. But the 4.9 billion pound ($6.3 billion) cash bid looks mean as far as takeovers go. It equates to a low premium of 12% above Just Eat’s price before the Takeaway.com talks emerged.True, the Prosus offer is superficially better than the Takeaway.com merger. The latter deal would give Just Eat shareholders just over half the combined company, roughly in line with the duo’s average relative market values in the three months before discussions leaked. The upside would be split almost equally between each side’s investors. But there wouldn’t be much to share. Takeaway.com envisaged just 20 million euros ($22 million) of cost savings annually after four years. The governance was a bit of a fudge with board seats handed to both sides.Moreover, Prosus’s premium is arguably higher than it looks. As Prosus points out, the internet sector’s shares have fallen in recent months. Takeaway.com is down 15% since the Just Eat talks emerged in July. If there were no negotiations and Just Eat shares had tracked its peer, its shares would be trading at about 540 pence. Prosus’s hostile offer adds 31% to that — that’s a more conventional-sized takeover top-up.But the offer still isn’t high enough. Many of Just Eat’s top shareholders are also invested in Takeaway.com. For them the precise terms of the existing merger plan don’t matter too much. They may have liked the idea of crunching their holdings into a single big player they could hold over the long term. Forgoing that opportunity by cashing out demands a better than average premium.With $5.7 billion of net cash and billions of dollars of listed holdings, Prosus can afford to go higher. Its offer ascribes Just Eat an enterprise value of 3.8 times estimated 2020 sales, as shareholder Cat Rock Capital Management LP notes. Takeaway.com’s trading multiple is 8.3 times, although its markets are less competitive.Just Eat’s expected 394 million pounds of operating profit for 2023 would indicate a 7% post-tax return for Prosus from the deal. That’s in line with the target’s cost of capital. Add cost savings and the returns would probably be higher, which would justify paying more.It’s hard to see how Takeaway.com, with a market value of just 4.5 billion euros, could outbid Prosus. Nor is it clear that another tech giant might want to wade in. But shareholders have leverage just from saying no. They should back their board in demanding more before recommending a full takeout.To contact the author of this story: Chris Hughes at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- Naspers spinoff Prosus NV swooped in with a 4.9 billion pound ($6.3 billion) hostile offer for U.K. food delivery company Just Eat Plc, challenging a deal with Takeaway.com NV.Prosus offered 710 pence a share in cash for Just Eat, it said in a statement Tuesday. Takeaway’s original all-stock offer valued Just Eat’s shares at about 731 pence apiece as of July. By Monday’s close, the figure had dropped to about 595 pence as Takeaway’s shares declined following the deal’s announcement.Just Eat shares jumped above both bidders’ offers, rising as much as 26% to 741.4 pence on the news, the most since July. The company said it had rejected three proposals from Prosus, including this one, opening the door to a bidding war.Prosus Chief Executive Officer Bob van Dijk said on a call with reporters Tuesday that the company had approached Just Eat’s board but failed to reach an agreement.“We don’t see this as going hostile,” Van Dijk said on the call. “We want to give shareholders the opportunity to consider this because it’s in their best interest, that’s why we’re putting this forward.”The CEO said that sustaining Just Eat’s market position “will require significant investment in product, technology and delivery capabilities. That’s something we’re capable of doing.”Takeaway’s proposal would have given Just Eat shareholders 52% of the combined group and the firms had plans to combine their management and boards. The companies had said they expected to close the deal by the end of the year.But some investors hadn’t been happy with the proposed sale to Takeaway. In September, analysts at Liberum said the earlier bid undervalued Just Eat, and Eminence Capital said the financial terms were “grossly inadequate.”Representatives for Takeaway.com didn’t immediately respond to requests for comment.The food delivery industry has been roiled by mergers of late. Just Eat and Takeaway agreed to their combination less than six months after Takeaway spent about $1 billion for the German operations of rival Delivery Hero SE. Spanish food delivery startup Glovo has also drawn preliminary interest from Uber and Deliveroo in recent months.Meanwhile, Uber Eats and Deliveroo are currently battling for virtual restaurants, where eateries lease kitchen space to prepare food for couriers. With no dining rooms or wait staff, these outfits pop up where food delivery companies expect demand, and sell their meals through Uber Eats or Deliveroo’s app.Naspers listed Prosus in Amsterdam last month and still owns 74% of the company, which controls internet companies around the world. While online food delivery has long been a preferred focus, a successful bid for Just Eat would dwarf the $2.8 billion previously spent on the sector.Naspers has expanded through acquisition since turning a $32 million investment in Chinese giant Tencent Holdings Ltd. into a stake currently worth about $124 billion. The Cape Town-based company focuses on e-commerce companies, with a particular interest in payments and travel booking as well as food.In its statement, Just Eat said JPMorgan Chase & Co. would provide a bridge loan to Prosus.\--With assistance from Janice Kew and Loni Prinsloo.To contact the reporters on this story: Amy Thomson in London at email@example.com;Natalia Drozdiak in Brussels at firstname.lastname@example.orgTo contact the editors responsible for this story: Giles Turner at email@example.com, Nate Lanxon, John BowkerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Shares in Prosus, a spin-off from Naspers that includes the e-commerce group's 31% stake in Chinese tech giant Tencent, surged more than 25% on their stock market debut in Amsterdam on Wednesday, creating one of Europe's largest internet companies. Prosus comprises South African group Naspers' global empire of consumer internet assets, including the stake in Tencent, the world's biggest video game company and home to China's hugely popular WeChat social media platform. "We've become so big that further growth of our company on the JSE (Johannesburg Stock Exchange) would be difficult," Naspers CEO Bob van Dijk told reporters after the listing, which values Prosus at more than $100 billion.
Shares in the spin-off of South African e-commerce group Naspers surged more than 25% in the first minutes of their market debut in Amsterdam on Wednesday. Prosus comprises Naspers' global empire of consumer internet assets, with the jewel in the crown a 31% stake in Chinese tech titan Tencent. There is "way more demand than is even available, so that’s good," said the CEO of Euronext Amsterdam, Maurice van Tilburg.
* What is Prosus? Prosus, a Latin word that can be translated as "forwards", is a portfolio manager that invests in fast-growing consumer internet companies in developing nations. The new entity's biggest draw is the stake in conglomerate Tencent, the world's biggest videos game company, a social media platform to rival Facebook via its billion-user WeChat app, as well as a payments giant.
South African e-commerce group Naspers is listing its global empire of consumer internet assets under the name of Prosus on Wednesday - and the jewel in the crown is a 31% stake in Chinese tech titan Tencent. The spin-off in Amsterdam marks the end of an era for Naspers as it looks to move beyond the legacy of former Chief Executive Koos Bekker's prescient investment of just $34 million in Tencent when it was a startup in 2001, one of the most lucrative bets in corporate history. The stake in Tencent, the world's biggest videogame company and home to the hugely popular WeChat social media platform, is now worth $130 billion and has buttressed Naspers' rapid growth towards becoming Africa's most valuable listed company.
In 2001, Naspers, a media company that launched in 1915 and later evolved into a media holding company with pay TV interests, agreed to invest $32 million for a 46.5% stake in Tencent. The China-based company had been founded just three years earlier, and, as Quartz notes in a 2014 story about the deal, Tencent wasn't a brand that many aside from users of its instant messaging platform, QQ, knew at the time. Of course, given Tencent's wild growth, it has largely come to define Naspers .
Indian digital platform Meesho has raised $125 million in its latest funding round, led by South African internet group Naspers, the e-commerce start-up said on Monday. Cape Town-based Naspers is in the midst of deploying a close to $10 billion war chest to scale up its e-commerce ventures and make new investments in online classifieds, payments and food delivery platforms. U.S. tech giant Facebook also took part in the funding round, together with existing Meesho investors SAIF, Sequoia, Shunwei Capital, RPS and Venture Highway.