Food delivery company Just Eat has rejected a takeover offer from South Africa’s Prosus, saying that the 4.9 billion-pound ($6.2 billion) cash offer “significantly undervalues” it. Prosus N.V., which is owned by South African internet retail group Naspers, has now raised its takeover offer for Just Eat twice, only to still be rejected. Shares in Just Eat jumped 26% in London on Tuesday as investors seem to hope for a newly raised bid.
Just Eat has operations in many European countries as well as Australia, Canada, Mexico, and Brazil, among others. It said in a statement that its board “unanimously recommends that shareholders reject the Prosus offer.”
The bid comes at a time when investors are lowering the valuation of some online businesses, with workspace startup WeWork struggling financially and some IPOs not doing as well as hoped.