Prosus, the technology investor, said on Friday it would pay €1.5 billion ($1.51 billion) in cash and an additional 'consideration' of up to €300 million to buy the 33% stake in Brazilian company iFood from rival Just Eat Takeaway.com it doesn't already own.
The deal will give Prosus sole control of iFood, considered one of the most attractive food delivery businesses in one of the world's biggest markets, while giving Takeaway – which is racing to achieve profitability – a vital cash infusion.
The price Prosus is paying for the iFood stake is approximately half the current market capitalisation of all of Takeaway, Europe's largest meals delivery company.
'Committed And Disciplined Approach'
"Increasing our stake to full ownership is a demonstration of our committed and disciplined approach to investment and reflects our confidence in the long-term potential of iFood," said Prosus CEO Bob van Dijk in a statement.
Takeaway, whose shares have lost two thirds of their value over the past year, had long been seeking to sell the iFood stake, but had been unable to reach terms.
CEO Jitse Groen said in August 2021 he had turned down a €2.3 billion offer for iFood from an unnamed bidder as 'inadequate', as valuations of meals companies soared amid the COVID-19 pandemic.
According to a disclosures in Just Eat Takeaway's half year results last month, iFood had a net loss of around €120 million in the first half of 2022, though sales grew 28%.
According to a Prosus statement announcing the deal, iFood is making around 70 million deliveries per month.