Prosus hungry for Just Eat
HARD WORK: SOME COMPELLING ARGUMENTS
It can make substantial investments in technology, marketing and delivery to transform Just Eat and increase market share.
track record.
Food delivery is going through a global transformation, with own-delivery key to success.
Just Eat is facing significant competitive pressure and requires investment in own-delivery, marketing, product and technology.
The investment market is underestimating the impact of the required transformation on Just Eat’s financials.
Combination with Takeaway.com would not address the challenges that Just Eat faces.
Prosus can make substantial investments in technology, marketing and delivery capability to transform Just Eat and increase its market share, said Sgourdos. “Prosus has the delivery expertise, a global portfolio of businesses and a good track record,” he added.
Prosus believes the key to success in the food delivery market is to own and manage a food delivery service, rather than only offering an internet platform where people can order food, but remain limited to restaurants that already have their own delivery vehicles and drivers.
Offering ordering capability as well as a delivery service is key to growth, according Prosus.
The formal offer document and circular to shareholders that contains the full information of the offer was also published on Monday. The offer to Just Eat shareholders is open until December 11, but Prosus makes provision to extend the acceptance date in accordance with stock exchange rules and regulations.
An important condition of the offer is that Prosus wants to acquire a minimum of 75% of Just Eat for the offer to become effective. Depending on acceptance by December 11, Prosus will consider extending the offer to January 10, 2020.
The final result of the hostile offer to buy Just Eat will be announced by January 31.