In an open letter, Cat Rock stated that JET provided “misleading information” about the acquisition of US Grubhub and thus “seriously damaged shareholder confidence”.
Cat Rock Capital owns a 6.9 percent stake in meal delivery company Just Eat Takeaway, the parent company of Thuisbezorgd.nl, and has been invited by Groen to sell Grunhub again. Last week, under pressure from Cat Rock, among others, Groen announced that the Grubhub had been put up for sale. With “some advisors” being examined whether a sale is possible to the US group, which was acquired last year for $7.3 billion.
This directive is not enough for Cat Rock. In sharp terms, the US contributor notes that JET in the US is a “severe underperformer” compared to competitors such as DoorDash and Uber Eats. “JET shareholders have been penalized with a 75 percent drop in stock prices in less than two years,” said Alex Captain, CEO of Cat Rock. “The acquisition of Grubhub was a capitalist miscalculation.”
According to the captain, JET presented a very rosy picture of the Grubhub acquisition. In 2021, the group suffered a huge loss of one billion euros, in January Groen acknowledged that JET will also end in minus this year. “Meal delivery is not a sprint but a marathon,” said Gruen, who forecasts the black numbers for 2023. Cat Rock doesn’t want to wait that long.
Americans are calling for CFO Wisink to go “to restore credibility”, and management – including founder Gruen – must also be replaced. “Just Eat Takeaway has great potential which is why we are inviting other shareholders to vote for the current management.”
Analyst Nico Enberg of De Shareholder NL. Last week it was expected that Groen would be shot. With nine percent of the shares, he couldn’t force anything himself.
Just Eat Takeaway management says it shares Cat Rock’s disappointment about the company’s devaluation. The acquisition of Grubhub was specifically aimed at increasing the value of the stock. We have always acted in good faith.”
So JET opposes Cat Rock’s call to fire the board. “Cat Rock’s proposal is devastating and will destabilize the company.”
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