Just Eat Takeaway.com shareholder Cat Rock urges sale of GrubHub

FILE PHOTO: Riders for “Grubhub” food delivery service congregate between deliveries in midtown Manhattan following the outbreak of the coronavirus disease (COVID-19) in New York City, New York, U.S., July 9, 2020. REUTERS/Mike Segar

AMSTERDAM (Reuters) – Investor Cat Rock, one of the largest shareholders of online food ordering company Just Eat Takeaway.com, on Monday urged the company’s management to consider the sale of its U.S. arm GrubHub.

Cat Rock, which holds a 6.5% stake in Takeaway, said selling or spinning off the unit would improve the valuation of Takeaway, which has lagged peers over the past year.

Amsterdam-based Takeaway, Europe’s largest meals ordering company, only completed its $7.3 billion acquisition of GrubHub in June, which also included important Canadian and Australian operations.

“A deeply depressed stock price poses a real risk to JET’s business, limiting its financial and strategic flexibility, inviting competitors to invest in its markets, and leaving the Company vulnerable to takeover bids well below its long-term intrinsic value,” Cat Rock said in a statement.

Takeaway could not immediately be reached for comment. Last week at a meeting with investors the company outlined its strategy for defending market share in the U.S., particularly New York City where the company vies with DoorDash and Uber.

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