Just Eat Takeaway Grabs Cash, Sells Brazil’s iFood to Prosus for EUR 1.8 Billion

Technology investor Prosus mentioned on Friday it could pay as much as EUR 1.8 billion (roughly Rs. 14,500 crore) to purchase the 33 p.c stake in Brazil’s iFood from rival Just Eat Takeaway.com that it doesn’t already personal. The deal will give Prosus sole management of iFood, thought-about one of the enticing meals supply companies in one of many world’s largest markets. It additionally provides Takeaway, which is racing to realize profitability, an important money infusion.

Prosus mentioned it could pay EUR 1.5 billion (roughly Rs. 12,100 crore) in money and a further consideration of as much as EUR 300 million (roughly Rs. 2,400 crore) for the 33 p.c iFood stake. The worth quantities to about half the market capitalisation of Takeaway, Europe’s largest meals supply firm, and greater than the market worth of its rival Deliveroo.

“Increasing our stake to full ownership is a demonstration of our committed and disciplined approach to investment and reflects our confidence in the long-term potential of iFood,” mentioned Prosus Chief Executive Bob van Dijk in an announcement.

Takeaway, whose shares have misplaced two thirds of their worth over the previous 12 months, had lengthy been in search of to promote the iFood stake, however had been unable to achieve phrases.

While they had been companions in iFood, Prosus and Takeaway had fought bitterly throughout a 2020 takeover battle for Just Eat, which Takeaway ultimately gained.

Takeaway CEO Jitse Groen mentioned in August 2021 he had turned down a EUR 2.3 billion (roughly Rs. 18,500 crore) supply for iFood from an unnamed bidder as “inadequate”, as valuations of meals corporations soared amid the COVID-19 pandemic.

The worth Takeaway is receiving now “represents an equity multiple of over five times” the corporate’s investments, it mentioned.

According to a disclosures in Takeaway’s half 12 months outcomes final month, iFood had a web lack of about EUR 120 million (roughly Rs. 1,000 crore) within the first half of 2022, though gross sales grew 28 p.c. Prosus mentioned iFood was making about 70 million deliveries monthly.

Takeaway mentioned it anticipated the iFood deal to shut within the fourth quarter and that it was persevering with to discover “the partial or full sale” of Grubhub, the U.S. meals supply firm it purchased final 12 months for $7.3 billion (roughly Rs. 58,200 crore).

© Thomson Reuters 2022