|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||70.65 - 76.50|
|52 Week Range||42.50 - 89.60|
|Beta (3Y Monthly)||-0.02|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||61.81|
(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.
Naspers, the South African tech conglomerate, has tried to gatecrash a merger of two of Europe’s biggest food delivery groups, unveiling a hostile £4.9bn offer for the UK’s Just Eat. Just Eat’s board rejected the all-cash offer, made through Naspers’ Dutch-listed vehicle Prosus, saying it “significantly undervalued” the UK company.
(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.
Just Eat said it's rejected the 710 pence a share bid from Prosus that was announced earlier on Tuesday. "The Board of Just Eat has considered the terms of the Prosus Offer and believes that 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," the company said. Just Eat said it had rejected earlier indicative bids from Prosus, and that it's provided due-diligence information to Prosus.
Prosus on Tuesday announced a rival bid for the U.K. based food delivery service Just Eat , offering 4.9 billion pounds ($6.35 billion), or 710 pence a share, in cash. Prosus said it's a premium of 20% to the bid from Takeaway.com , based on the Oct. 21 close. Prosus and the Just Eat board have not managed to reach agreement, the company said. Just Eat shares jumped 21% to 715 pence.
(Bloomberg) -- Just Eat Plc’s shares fell as much as 6.4% in London trading on Monday after the company said U.K. order growth slowed in the third quarter.Shares declined 6% to 587.6 pence at 8:56 a.m. after earlier touching 622.8 pence, the biggest intraday retreat since September.U.K. order growth slowed to 8% for the calendar third quarter -- compared to 11% for the period before -- after the company’s marketplace business slowed, Just Eat said in a statement on Monday. Increased competition from the likes of Uber Eats and Deliveroo as well as easy access to grocery delivery may be impacting the business’s expansion, analysts at Peel Hunt said in a note to investors on Monday.The company left its guidance for the full-year unchanged and expects revenue of as much as 1.1 billion pounds ($1.4 billion).The firm agreed this year to sell itself to Takeaway.com NV of the Netherlands for 5 billion pounds in shares. The companies have said they expect the deal to close by year end. The deal gave Just Eat shares an implied valuation of 731 pence.The U.K. competition regulator said last week that it had started a probe into Amazon.com Inc.’s bid for Roofoods Ltd., which does business under the Deliveroo brand.\--With assistance from Kit Rees.To contact the reporter on this story: Amy Thomson in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Giles Turner at email@example.com, Nate Lanxon, Paul SillitoeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Just Eat, the takeaway food platform that agreed to merge with Takeaway.com in August, reported 25% growth in third-quarter revenue on Monday, boosted by the wider roll out of its delivery service in Britain. Interim chief executive Peter Duffy said Just Eat was seeing strong growth in markets including Canada, Europe and Australia.
The fear that Uber and Deliveroo will eat their lunch is driving consolidation among European food delivery groups. Just Eat is this year excluding the results of Mexico operations from adjusted earnings.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.The U.K. competition regulator has started a review into Amazon.com Inc.’s bid to buy a slice of fast-growing food delivery startup Deliveroo, adding to the e-tailing giant’s antitrust woes around the globe.The Competition and Markets Authority said on its website Wednesday it’s investigating the purchase of rights and a minority shareholding in Roofoods Ltd., which does business under the Deliveroo brand. The first phase will wrap up by Dec. 11, it said.The investigation comes after the regulator said in July it had “reasonable grounds” to believe Amazon and Deliveroo, which operates a fleet of smartphone-navigated scooters and bicycles to deliver food from local restaurants, had either ceased to be separate operations or were close to merging. While CMA reviews into mergers are relatively common, it’s unusual for the regulator to examine acquisitions of minority stakes.A spokesman for Amazon declined to comment, while a representative for Deliveroo didn’t immediately return a message inquiring about the review.U.S. Democratic presidential contender Elizabeth Warren on Tuesday called out Amazon for running an online marketplace and competing with third-party sellers on the platform as the European Union’s competition czar investigates whether the company is shortchanging smaller merchants in that dual role. Amazon also faces separate antitrust scrutiny from the U.S. Federal Trade Commission and Justice Department.Cash InjectionIn May, Amazon said it would invest in a $575 million funding round to help the London-based startup expand its technology team and network after closing down its own food delivery business in the capital last year. U.K. food delivery has become fiercely competitive, and Deliveroo’s rivals include Just Eat Plc and Uber Technologies Inc.That rivalry has driven acquisition talk across the industry. Just Eat and Takeaway.com NV agreed in July to a 5 billion-pound ($6.4 billion) combination, less than six months after Takeaway.com 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, people familiar with the matter said previously.Deliveroo said this month that while global sales from its food-delivery business had increased 72% in 2018, profitability remained elusive. The company said it lost 232 million pounds last year compared to 199 million pounds a year earlier.Amazon has signaled its growing ambitions in the U.K. grocery market with Prime Now, which delivers in major British cities within two hours. It faces stiff domestic competition from the likes of Ocado Group Plc, an online grocery pioneer that licenses its technology to the likes of Kroger Co. and aims to halve the Prime Now delivery time with a service called Zoom.(Adds Amazon’s response in fourth paragraph, background on acquisitions from sixth paragraph)\--With assistance from Stephanie Bodoni.To contact the reporters on this story: Hugo Miller in Geneva at firstname.lastname@example.org;Christopher Elser in London at email@example.comTo contact the editors responsible for this story: Giles Turner at firstname.lastname@example.org, Amy Thomson, Nate LanxonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Dutch online food delivery company Takeaway.com reported an 87% increase in third-quarter orders on Wednesday, driven by organic growth and acquisitions. The company processed 41.6 million orders across its markets in the period, supported by strong sales in Germany where it completed the acquisition of the local arm of the world's biggest online food delivery firm, Delivery Hero, in April. Most players, excluding Britain's Just Eat, are yet to produce profits as they spend heavily on marketing and acquisitions.
(Bloomberg) -- Deliveroo’s battle with food delivery rivals is intensifying after the U.K.-based startup posted strong growth, but also an increase in losses.Global sales from its food-delivery business have increased 72% over the past year, reaching 476 million pounds ($583 million) for the year ended Dec. 31.Growth was driven by its international markets and the launch of a marketplace platform for restaurants with existing fleets of drivers to sell meals via the London-based startup’s app, it said in a statement Wednesday.Although sales grew, profitability is a way off. Deliveroo posted a pre-tax loss of 232 million pounds for the period, compared to 199 million pounds a year earlier.Deliveroo Chief Executive Officer Will Shu said he was optimistic about the company’s outlook, and said it “continued to invest heavily in expansion, technology and new products.”In May, Deliveroo said it had secured $575 million in funding led by Amazon.com Inc. and other investors, and would continue to expand in markets including the U.K., France, Italy, Spain and Dubai. But in August, it announced an abrupt retreat from Germany after more than four years, as an increasingly cut-throat competitive landscape piled pressure on the industry.The food delivery industry has been roiled by mergers of late. Just Eat Plc and Takeaway.com NV agreed in July to a 5 billion-pound combination, less than six months after Takeaway.com 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.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.Deliveroo has raised $1.53 billion, and was valued at $2 billion in a funding round in 2017. Over the next four years, the food-delivery business is estimated to increase 12% a year, to $76 billion in 2022, according to investment firm Cowen Inc.To contact the reporter on this story: Nate Lanxon in London at email@example.comTo contact the editor responsible for this story: Giles Turner at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Eminence Capital, a New York hedge fund that holds 4.4% of Just Eat stock, said it would vote against the food-delivery app’s merger with rival Takeaway.com
Investment firm Cat Rock, however, said on Tuesday Just Eat shareholders should vote for the merger unless a more "compelling and credible" counter-offer emerges. "Voting against the Just Eat and Takeaway.com merger benefits no one but Just Eat's competitors," Cat Rock said in a statement https://static1.squarespace.com/static/5c13f4c6e17ba3aca12b9686/t/5d6e5eef4f45fb00014f46f7/1567514352007/Cat+Rock+Capital+Press+Release+on+Just+Eat+plc+9-3-19+vFinal.pdf. Cat Rock had been pushing Just Eat to merge with a rival such as Takeaway and has also stepped up its campaign for changes at the company.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Bolt, the ride-hailing service formerly known as Taxify, said it has begun operating a food-delivery business in its native Estonia, and will launch in other European and African countries next year.Bolt Food will deliver meals from about 80 restaurants in the country’s capital of Tallinn, using the company’s existing network of thousands of drivers, the company said in a statement Wednesday. Bloomberg reported in March that Chief Executive Officer Markus Villig would consider bringing a food-delivery service “anywhere we have a market-leading position.”The Estonian company’s expansion follows significant consolidation of the food-delivery market in Western Europe. In August, Takeaway.com NV and Britain’s Just Eat Plc agreed on terms to combine their two businesses. Takeaway also agreed to acquire the German business of Delivery Hero SE for approximately 930 million euros ($1 billion) in December.Bolt has 25 million registered users across the 30 countries where it’s active, and hundreds of thousands of drivers working for its ride-hailing service, according to a spokesman. Villig said in March he’s confident the market will support his ambition to compete in the food-delivery space.The company raised $175 million in May last year at a $1 billion valuation, in a deal led by Daimler AG.To contact the reporter on this story: Nate Lanxon in London at email@example.comTo contact the editors responsible for this story: Giles Turner at firstname.lastname@example.org, Stefan NicolaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
On-demand food delivery startup Deliveroo has announced that it is leaving the German market, citing difficulties in maintaining the level of customer service that it offers across several other markets that it operates in. "At Deliveroo we're on a mission to create the very best food delivery service in the world, and at the heart of this is offering a service that works brilliantly for our customers, riders and restaurants," it said in an email sent out to its users. Deliveroo had struggled to grow its market capitalization in Germany, against severe competition within the food delivery space.
(Bloomberg) -- Amazon.com Inc.-backed food-delivery service Deliveroo announced an abrupt retreat from Germany after more than four years, a casualty of increasingly cut-throat competition tearing through the industry.The service will cease operations in Europe’s largest economy on Aug. 16, telling customers in an email Monday that it can no longer offer the desired “brilliant” service standard. Instead, Deliveroo will focus on “growing our operations in other markets around the world.”Deliveroo’s German business is the latest victim in the European food-delivery industry, which has long suffered from expensive competition that has forced established players to consolidate or close shop. Takeaway.com NV agreed to buy the German businesses of Delivery Hero SE last year to end an expensive rivalry in the country where both were competing for market share at the cost of profitability. Britain’s Just Eat Plc and Takeaway are now pursuing an all-share 5 billion-pound ($6 billion) combination.The firm employs riders that cycle restaurant meals to customers’ doors in boxy backpack containers emblazoned with Deliveroo’s logo. It’s a business model that’s logistically more challenging than simply offering a platform to connect restaurant and foodie. The service is available in cities including Berlin, Frankfurt and Cologne, though Deliveroo already began retreating from some German cities last year, including Leipzig or Stuttgart.It’s especially tough to make money in Germany, where consumers don’t order as often as their counterparts in the U.K. or the Middle East, and where riders can go on strike and form unions. Takeaway already buried the Deliveroo clone Foodora, which operated alongside Deliveroo in Berlin, and Uber Eats never started in the country.Deliveroo hasn’t ruled out returning to the German market in the future, according to a person familiar with the matter. It will refocus its resources first to grow its business in other parts of Europe and the Asia-Pacific region. Job losses for employees, riders and restaurants will be compensated, the person said.In May, Deliveroo said it had secured $575 million in funding from Amazon.com Inc. and other investors. The company at the time said it would continue to expand in markets including the U.K., France, Italy, Spain and Dubai.\--With assistance from Sarah Syed.To contact the reporters on this story: Stefan Nicola in Berlin at email@example.com;Nate Lanxon in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Giles Turner at email@example.com, Benedikt KammelFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Spanish food delivery startup Glovo has drawn preliminary interest from Uber Technologies Inc. and Deliveroo in recent months as the industry undergoes a wave of consolidation, people familiar with the matter said.Talks between the Barcelona-based company and potential partners have been on and off and may not lead to a transaction, the people said, asking not to be identified because the deliberations are private. While suitors have shown preliminary interest, Glovo isn’t actively looking for a buyer, the people said.Glovo is continuing to raise fresh funding and has also held early-stage talks with SoftBank Group Corp. about a potential investment, two of the people said. Glovo, which has markets in Europe, Latin America and Africa, may prefer to explore partnerships or deals on a region-by-region basis rather than a full sale, one of the people said.Representatives for Glovo, Uber, Deliveroo and SoftBank declined to comment.Delivery platforms have become prime takeover targets as startups battle for survival against more established incumbents and companies branch out into new services. On Monday, Just Eat Plc and Takeaway.com NV agreed to a 5 billion-pound ($6.1 billion) combination, less than six months after Takeaway.com spent about $1 billion on rival Delivery Hero SE’s German operations. Last month, Glovo struck a deal with French grocer Carrefour SA to make deliveries in France, Spain, Italy and Argentina.Square Inc. is selling its Caviar food-delivery app to DoorDash Inc. for $410 million, while Amazon.com Inc. has agreed to invest in Deliveroo.Click here to read more about the surge in delivery deals.Glovo, which markets itself as an app for anything and lets users request a range of products, was valued at about 850 million euros ($950 million) in its last fundraising round, one of the people said. The company is considering an initial public offering as soon as 2020, people familiar with the plans said in April. Investors in the firm include restaurant-owner AmRest Holdings SE, venture capital firms Lakestar and Seaya Ventures and Delivery Hero.Uber Eats, targeting an expansion into grocery delivery, has held talks with the U.K.’s second-biggest grocer, J Sainsbury Plc, people familiar with the matter said last month. The supermarket operator this month announced it was partnering with Deliveroo to bring hot pizza to homes in four British cities.To contact the reporters on this story: Giles Turner in London at firstname.lastname@example.org;Rodrigo Orihuela in Madrid at email@example.comTo contact the editors responsible for this story: Giles Turner at firstname.lastname@example.org, Amy Thomson, Matthew MonksFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.