Just Eat Takeaway.com has agreed to sell its 33% stake in Brazalian food delivery operation iFood for a sum worth up to €1.8bn.

It will sell its stake to iFood’s majority owner (and one time Just Eat suitor) Prosus for €1.5bn and a further €300m contingent on the performance of the online food delivery sector over the next twelve months.

Just Eat said the deal represents an equity multiple of over 5 times on the investments over the life of the joint venture.

The group said it remains focused on improving its profitability and on a disciplined allocation of capital.

It will retain the transaction proceeds to maintain its balance sheet strength and to service repayments of its upcoming debt maturities.

The sale is subject to shareholder approval, with a vote expected to take place in the fourth quarter.

Just Eat Takeaway.com has also agreed to a break fee in the amount of €35 million, which will become due and payable if it becomes clear the deal will not happen before 17 February 2023.

The transaction is anticipated to be completed in the fourth quarter of 2022.

Meanwhile, Just Eat Takeaway.com, together with its advisors, continues to actively explore the partial or full sale of US delivery arm Grubhub as it focusses on core markets outside the US.

Just Eat shares are up 27.5% today to 1,792.4p on the news, their highest level since early June.

Topics