Europe's largest online food ordering service Just Eat Takeaway.com NV moved quickly to shore up its finances with an overnight share and convertible bond issue as Britain's competition watchdog gave the company's merger final approval.
Takeaway bought Just Eat in January after a long takeover fight.
Takeaway said on Thursday (April 23) that it has raised €400 million, representing a 3.2% dilution of its stock base, from an accelerated overnight offering to institutional investors. Shares were issued at €87 per share, a 3.7% discount to its closing price on Wednesday April 22.
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The company also issued €300 million in convertible bonds.
The money will be used to pay down credit facilities used by both Just Eat and Takeaway and for general corporate purposes as well as to provide the company with financial flexibility to act on strategic opportunities.
Separately, Britain's Competition and Markets Authority said it that is unconditionally approving the companies' merger.
Takeaway and Just East, operating separately until last week, have each said that they saw an initial shock from the coronavirus outbreak, but orders are recovering.
"The Right Decision"
"In this case, we carefully considered whether Takeaway.com could have re-entered the UK market in future, giving people more choice," CMA mergers director Colin Raftery said in a statement. "But after gathering additional evidence which indicates this deal will not reduce competition, it is also the right decision to now clear the merger."