Just Eat Takeaway.com NV has just agreed to sell its 33% stake in iFood, a Latin American joint venture to Prosus NV. The deal will be worth €1.8 billion in cash and it will bolster Just Eat’s balance sheet though it is priced below the previous offer for the shares.
Prosus has a strong track record of investing in, transforming and scaling food delivery businesses in some of the world’s highest growth markets. It has a broad global perspective on the food delivery industry with a presence in 57 markets globally.
Just Eat Takeaway.com sells iFood stake
Prosus will pay €1.5 billion in cash when the deal closes and an additional €300 million will be paid in the next 12 months depending on the company’s performance, said Just Eat.
The deal is expected to close in the fourth quarter. Post the sale of its stake, Just Eat Takeaway.com said it will remain focused on improving its profitability and on a disciplined allocation of capital. The proceeds from the deal will be used to maintain its balance sheet strength and to service repayments of its upcoming debt maturities.
Just Eat shares jumped 29% in London on Friday to 1,808 a piece. The stock had declined 66% this year through Thursday’s close. On the other hand, Prosus gained less than 1% in Amsterdam.
Prosus chief executive officer Bob van Dijk said: “We first invested in iFood nearly a decade ago and during this time Fabricio and team have built a world-class food delivery business. They have shaped the sector in Brazil, creating a platform that serves 330,000 restaurant partners, provides income opportunities for 200,000 delivery partners, and delivers approximately 70 million orders every month.”
“The Brazilian Food Delivery sector has grown significantly over the past four years. There is substantial opportunity for further expansion in both the restaurant food delivery business and through building out the platform in areas such as grocery and quick commerce. iFood has established itself as a technology leader in Brazil and its success places it among the most innovative food delivery companies across the globe. We are thrilled to be fully backing the company on its path to transform the entire food chain to better serve customers,” said Larry Illg, CEO of Prosus Food.
“Prosus has been a committed partner to iFood and Movile over the last decade. I am delighted that they continue to have such strong belief in our vision and ability to build a successful business that Brazilians can continue to be proud of,” said Fabricio Bloisi, Movile founder and iFood CEO. “Together we will build a platform of offerings that provide Brazilian customers, delivery partners, restaurants and more, with the best experience in food, grocery delivery and fintech.”