Just Eat Shares Soar

Shares of Just Eat (JE.L), a British online food order and delivery service, traded sharply higher early on Monday after the company said a deal has been agreed for a possible merger with The Netherlands’ Takeaway.com (TKWY.AS), creating one of the largest online food delivery companies in the world.

Under the terms of the merger, Just Eat shareholders would be entitled to receive 0.09744 Takeaway.com shares in exchange for each Just Eat share, according to a statement. The deal would result in Just Eat shareholders owning about 52.2% and Takeaway.com shareholders the remaining 47.8% of the combined entity.

The terms imply a value for Just Eat of 731 pence ($8.83) per share based on Takeaway.com’s closing share price on July 26 of 83.55 euros ($93.01). This represents a premium of 15% to Just Eat’s closing share price on July 26. The BBC said in a report on Monday that the deal values the joint group at about 8.2 billion pounds.

The “compelling strategic rationale” behind the proposed merger is that it would create an online food delivery platform — using 2018 figures from both companies — with 360 million orders worth 7.3 billion euros.

After completion, Mike Evans, currently the chairman of Just Eat, will assume the role of chairman of the combined group. Jitse Groen, currently chief executive officer of Takeaway.com, will become the chief executive of the merged firm and, similarly, Paul Harrison from Just Eat will take over as chief financial officer. Brent Wissink, currently the chief financial officer of Takeaway.com, and Jorg Gerbig, currently the chief operating officer of Takeaway.com, will be named co-chief operating officers.

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