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Delivery Hero orders shares in newly combined Just Eat Takeaway.com
Posted on Thursday, 13 February 2020 11:16
Germany’s Delivery Hero has placed an order for 8.40 million additional stocks in a share purchase and multi-year equity collar agreement with the newly merged Just Eat Takeaway.com.
The group is looking to restore its exposure in the business to around 10.6 per cent after it was diluted through the combination of the two food delivery platforms.
It has entered into a forward purchase agreement with an unnamed financial institution to purchase the shares, which, based on Just Eat Takeaway.com’s close of EUR 98.30, can be valued at around EUR 825.72 million.
Stocks in the business declined 1.9 per cent to EUR 96.35 at 04:52 in pretrading today, giving the company a market capitalisation of EUR 13.85 billion.
UK-based Just Eat was taken over by Netherlands-headquartered rival Takeaway.com on 31st January 2020 for GBP 6.29 billion following a lengthy battle throughout 2019 with Prosus, which was also vying to acquire the company, via MIH Food Delivery Holding.
Shares in the combined firm began trading earlier this month and the Dutch group is now waiting for the final approval from the UK Competition and Markets Authority before it can merge its operations and brands fully.
This deal represents the largest investment by Delivery Hero, which recorded revenue of EUR 1.46 billion in the year ended 31st December 2019, since it picked up 88.0 per cent of South Korean online restaurant food ordering and delivery system Woowa Brothers for EUR 3.19 billion in December.
Just Eat Takeaway.com posted turnover of EUR 415.88 million in the same timeframe, up 79.0 per cent from EUR 232.31 million in the previous 12 months.
The company generated positive adjusted earnings before interest, taxes, depreciation and amortisation for the first time since Takeaway.com’s initial public offering, with EUR 12.27 million recorded in 2019, compared to a loss of EUR 11.28 million a year earlier.
When agreeing the terms of the combination, the groups said a tie up would create one of the world’s largest online food delivery platforms with 360.00 million orders worth EUR 7.30 billion in 2018.
It was also suggested Just Eat’s shareholders would hold 52.2 per cent of the merged company, while Takeaway.com’s investors will own 47.8 per cent.
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