The preliminary deal will quantity to €1.5 billion in money, plus one other €300 million relying on the efficiency of iFood over the subsequent 12 months.
Information of the pending deal despatched Simply Eat Takeaway’s shares hovering 25% to greater than €21 in early buying and selling on the Dutch Euronext Amsterdam inventory change.
Fairness a number of
Based in 2011, iFood operates primarily in Brazil and Colombia, and had raised practically $600 million in funding since its inception — with Just Eat Takeaway investing across three separate funding rounds, securing round 33% of the enterprise within the course of. Prosus, a Dutch multinational conglomerate owned by Naspers, and its Brazilian affiliate Movile owned the remaining shares, and because of this transaction, Prospus and Movile will personal iFood in its entirety.
Whereas Simply Eat Takeaway stated that its iFood fairness worth has elevated five-fold over the lifespan of the three way partnership, the sell-off comes amid troubling occasions for the corporate, which resulted from a $7.6 billion merger between the U.Okay.’s Simply East and Dutch rival Takeaway.com again in 2020.
After its valuation plummeted greater than 80% in 10 months, information emerged final month that Simply Eat Takeaway was scaling back in France, leading to 390 layoffs. And fewer than a 12 months after its $7.3 billion Grubhub acquisition lastly closed, Simply Eat Takeaway revealed it was looking to offload Grubhub as a part of a broader pursuit of “sustainable, worthwhile development.”
The corporate stated immediately that it plans to make use of its iFood proceeds to strengthen its stability sheet, whereas additionally honoring repayments on upcoming debt maturities. It additionally confirmed that it “continues to actively discover the partial or full sale” of Grubhub.
“Simply Eat Takeaway stays centered on bettering its profitability and on a disciplined allocation of capital,” the corporate wrote in an announcement.
Whereas the sale continues to be topic to stakeholder approval at an upcoming Extraordinary Normal Assembly (EGM), Simply Eat Takeaway stated that it expects the transaction to be accepted earlier than the top of 2022.