Just Eat Takeaway Shares Rise After Report of Potential Interest in Grubhub Unit
2022.06.10 12:52
By Scott Kanowsky
Investing.com — Just Eat Takeaway (AS:TKWY) shares jumped after Bloomberg reported that the food delivery company has seen preliminary interest in a sale of its U.S. division Grubhub to private equity firms including Apollo Global Management (NYSE:APO).
People familiar with the matter told Bloomberg that Just Eat Takeaway may have difficulty securing the $7.3B it originally paid for Grubhub last year, with some potential buyers considering offers near $1B. It also remains unclear which suitors will actually engage in formal talks, Bloomberg reported.
A spokesperson for Just Eat declined to comment, while Apollo did not immediately respond to a request for comment.
Just Eat has previously said it is working with its advisers to explore a partial or full sale of Grubhub. But the company added “there can be no certainty” about the timing or details of a possible agreement.
Shareholders have been placing pressure on Just Eat into selling Grubhub amid concerns over the Amsterdam-based group’s future profitability. The company has warned of a slowdown in annual customer spending, while competition from rivals like Deliveroo (OTC:DROOF) and Uber (NYSE:UBER) remains intense. In April, Just Eat said it will still be a year until investors see any profits.
Meanwhile, rising interest rates, which have led to a widespread decline in technology stocks, have also undermined the assumptions of cheap capital costs supporting its valuation. Just Eat shares have fallen by more than 70% in the past year.
