August 1, 2019 / 3:06 PM / in 17 days

Top-10 Just Eat investor says Takeaway.com offer not enough

LONDON (Reuters) - Top-10 Just Eat investor Aberdeen Standard Investments said it welcomed a planned merger with rival Takeaway.com, but the current deal terms did not value the British company highly enough.

Amsterdam-based Takeaway.com agreed on Monday to buy Just Eat in a 8.2 billion pound ($10.1 billion) deal to create the world’s largest online food delivery firm outside China in a race to rule the $100 billion market.

Pointing to Just Eat’s positive first-half results, its profit contribution to the combined group and the potential growth in key markets in Canada and Brazil, it should be valued at more than 731 pence a share, the fund firm said.

“(It) does not fully reflect the intrinsic value of the group, while exposing us to higher execution/integration risks medium-term,” ASI fund manager Frederik Nassauer said in a statement.

“As the share price continues to trade above the offer price, we (as well as the market) currently expect the offer will be raised in the coming weeks.”

ASI is Just Eat’s sixth-biggest investor, Refinitiv data showed. At 1315 GMT, shares in Just Eat were trading at 755.2 pence a share.

Reporting by Simon Jessop; editing by Pamela Barbaglia

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