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Just Eat has entered into a definitive agreement to sell its equity stake of approximately 33% in the iFood joint venture to Prosus N.V. in return for a cash consideration totalling up to €1.8bn (£1.5bn).
The news comes as the takeaway delivery company entered into an agreement with MIH Movile Holdings, an affiliate of Prosus, regarding the sale of the company’s equity stake of approximately 33% in iFood.
It is reported that the transaction consideration will comprise €1.5bn (£1.2bn) in cash on closing and a deferred consideration, contingent on the performance of the online food delivery sector over the next twelve months, of up to €300m (£254.4m).
The transaction is anticipated to be completed in Q4 of 2022, provided the resolution has been adopted at the EGM.
The consideration is said to represent an equity multiple of over five times on the investments over the life of the joint venture. The transaction is also subject to approval by the company’s general meeting.
Meanwhile, Just Eat said it “remains focused” on improving its profitability and on a disciplined allocation of capital as it plans to retain the transaction proceeds to maintain its balance sheet strength and to service repayments of its upcoming debt maturities.
The company also re-confirmed its guidance as set out in its half year 2022 results on 3 August 2022.
