Just Eat Takeaway €7.05B merger approval comes with €700M in tow, should Deliveroo be worried?

Back in July last year, London-based Just Eat and Dutch food delivery giant Takeaway announced their merger as official. This massive deal lead to the creation of a new combined company called Just Eat Takeaway with shares touching 916p before Christmas 2019. However, the Competition and Markets Authority (CMA) launched a probe that delayed the merger worth €7.05B, and now, it is approved. 

Just Eat Takeaway raises €700M through an accelerated bookbuild 

Just Eat Takeaway is one of the world’s largest online food delivery marketplaces and in its latest announcement, the company says that it has managed to place 4,600,000 new ordinary shares, raising gross proceeds of €400.2 million through an accelerated bookbuild offering. The newly issued shares represent about 3.2% of the company’s issued share capital. Additionally, a concurrent offering of convertible bonds in the aggregate principal amount of €300 million is due April 2026. 

Just Eat Takeaway will make use of the freshly raised amount to partially pay down revolving credit facilities currently utilised by both companies. Furthermore, the funds would be utilised for general corporate purposes and to provide the company with financial freedom to take strategic opportunities that may arise in the future. 

Capital increase expected to be completed by April 27, 2020

As for the details of the latest development on the merger of Just Eat Takeaway, the company will carry out capital increase by way of a private placement of the newly issued shares. This will be done on a non-pre-emptive basis and the settlement is expected to conclude by April 27, 2020. The company has also sent applications to the  Financial Conduct Authority (FCA), the London Stock Exchange plc (LSE) and Euronext Amsterdam for the inclusion of its new shares in the premium listing segment of the Official List of the FCA. 

Furthermore, the application asks that the company’s shares be available for trading on the main market for listed securities of the LSE and for admission and trading on Euronext Amsterdam. The admission of new shares is expected to happen by 9:00 AM CET on April 27, 2020. After the issuance of new shares, the total number of shares the company has in issues is 148,689,705.

Now with all that happening, should Deliveroo and Uber Eats be worried? Share your thoughts in the comments section below.

Main image picture credits: Nabil Imran/ Shutterstock

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