Just Eat Takeaway.com (JTKWY) is a hot topic this morning after tech investor Prosus (PROSY) announced it will acquire the online food ordering and delivery company. Prosus will spend 4.1 billion euros, or $4.29 billion, to bring Just Eat Takeaway.com under its control. That represents a 20.30 euros per share cash offer for the stock with the deal expected to close by the end of the year.
Investors will note that the offer from Prosus represents a 63% premium to Just Eat Takeaway.com’s stock price when markets closed on Friday. However, it’s still below the 23 euros per share that the stock started trading for when it went public in 2016. This shows that the food delivery company has struggled to please investors after online ordering subsided following the COVID-19 pandemic and lockdowns.
Why Prosus Wants Just Eat Takeaway.com
It makes sense that Prosus is acquiring Just Eat Takeaway.com as the investment firm has focused on food delivery companies before. That includes owning iFood while holding a 4% stake in Meituan, a 28% stake in Delivery Hero, and a 25% stake in Swiggy. Just Eat Takeaway.com CEO Jitse Groen said “Prosus fully supports our strategic plans, and its extensive resources will help to further accelerate our investments and growth.”
What Does This Mean for JTKWY Stock?
News of the acquisition deal has JTKWY investors excited, with the stock up 54.12% as of this writing. That comes alongside heavy trading with more than 77,800 shares changing hands. For comparison, the stock’s three-month daily average trading volume is below that at about 55,000 units.
Prosus intends to acquire all outstanding shares of Just Eat Takeaway.com, taking the company private. That means retail traders won’t be able to invest in the company as shares will no longer be listed on a public exchange.
