Just Eat rejected a raised takeover offer from Dutch-based technology group Prosus on Tuesday because it significantly undervalued the company and said it continued to back a rival all-share offer from Takeaway.com.
Prosus, a spinoff of South Africa’s Naspers, raised its bid for the British food delivery company to 740 pence a share from 710 pence on Monday.
Just Eat said the increased Prosus offer was only 16% higher than its share price of 635.6 pence in July before Takeaway.com said it was in talks about combining with the group, and was 5% lower than its share price on Friday.
Just Eat said the higher Prosus offer failed to reflect the quality of the company, the benefits of first mover advantage in a consolidating sector and the upside available to shareholders through remaining invested in Just Eat and the Takeaway.com combination.
“The board unanimously recommends that shareholders reject the Prosus offer of 740 pence per share and continues to believe that the Takeaway.com combination is based on a compelling strategic rationale that allows shareholders to participate in the upside potential of the enlarged group,” it said.