Investor Cat Rock: Prosus offer 'dramatically undervalues' Just Eat

FILE PHOTO: The app for Just Eat is displayed on a smartphone in this posed picture in London, Britain, August 5, 2019. REUTERS/Toby Melville

LONDON (Reuters) - Investor Cat Rock Capital said Prosus' PRX.AS 710 pence-a-share offer "dramatically undervalued" Just Eat, and offered none of the potential upside for shareholders of the agreed merger between Just Eat JE.L and TKWY.AS.

“Based on historical transaction precedents and market multiples, Prosus should pay at least 5.0x Just Eat’s fiscal year 2020 revenue, again attributing no value to Just Eat’s valuable stake in iFood,” Cat Rock said. “This multiple would translate to an all-cash offer of at least 925p per share.”

Cat Rock owns about 3% of Just Eat and also owns shares in

Reporting by Paul Sandle; editing by Kate Holton