Just Eat sells its stake in Brazilian company iFood for €1.8bn

Just Eat Takeaway has entered into a definitive agreement to divest its 33% (approx.) stake in iFood to Prosus in return for a cash consideration of up to €1.8 billion.

Just Eat has entered into an agreement with MIH Movile Holdings, an affiliate of Prosus, for the sale of the equity stake. 

iFood, a joint venture between iFood Holdings and IF-JE Holdings, is an online food and delivery platform serving the Latin American region.

The transaction consideration will comprise €1.5 billion in cash on closing and a deferred consideration – which is reliant on the performance of the online food delivery sector over the next twelve months – of up to €300 million.

According to Just Eat Takeaway, it remains “focused on improving its profitability and on a disciplined allocation of capital”. The company will retain the transaction proceeds to “maintain its balance sheet strength” and to “service repayments of its upcoming debt maturities”.

The transaction is subject to approval by the company’s general meeting.