Just Eat (JE/ LN): From a Strategic Perspective Prosus Is the Best Buyer, It Should Pay More

Just Eat Plc Situation Looks Headed To Auction

Just Eat (JE/ LN): How Much Can Prosus Pay?

European Event-Driven Analyst

Patryk Basiewicz

PGB Research

Event-Driven

On September 22, Prosus made an offer for <a href="https://www.smartkarma.com/entities/just-eat-plc" target="_blank" data-smartkarma-citation="entities:22014:1" rel="noopener">Just Eat PLC (JE/ LN)</a> at 710p per share or c. 20% above Just Eat’s closing share price on the previous day and the price implied by the Takeaway.com bid. Prosus' bid is hostile.
Currently, the spread is trading though the terms at c. 3.8%, implying a further bump from <a href="https://www.smartkarma.com/entities/prosus-nv" target="_blank" data-smartkarma-citation="entities:28104:1" rel="noopener">Prosus (PRX NA)</a> or <a href="https://www.smartkarma.com/entities/takeaway-com-nv" target="_blank" data-smartkarma-citation="entities:28360:1" rel="noopener">Takeaway.com NV (TKWY NA)</a>, or a counterbid from a third party. Note that once Just Eat is taken over then entry into the UK (and other Just Eat’s markets) will be very difficult in the future. So there is a good reason to think that other players are looking at the further bid.
Below I analyse who could enter the fray. Also, I discuss implications of the CMA’s recent order with regards to Amazon/Deliveroo deal.

On September 22, Prosus made an offer for Just Eat PLC (JE/ LN) at 710p per share or c. 20% above Just Eat’s closing share price on the previous day and the price implied by the Takeaway.com bid. Prosus' bid is hostile.
Currently, the spread is trading though the terms at c. 3.8%, implying a further bump from Prosus (PRX NA) or Takeaway.com NV (TKWY NA), or a counterbid from a third party. Note that once Just Eat is taken over then entry into the UK (and other Just Eat’s markets) will be very difficult in the future. So there is a good reason to think that other players are looking at the further bid.
Below I analyse who could enter the fray. Also, I discuss implications of the CMA’s recent order with regards to Amazon/Deliveroo deal.

Just Eat (JE/ LN): Who Else Can Enter the Bidding War?