Aberdeen Standard Investments (ASI) – one of Just Eat’s biggest investors – has called for Prosus to raise its offer by at least 20% for it “to be deemed attractive”, The Times has reported.

Earlier this week it was announced that the board at Just Eat had rejected a cash offer by Prosus, part of South African-based e-commerce group and investor Naspers, in a deal valued at c.£4.9bn.

According to The Times, ASI, which has a 5.2% stake in Just Eat, said it welcomed the interest in the company, but said that neither the bid from Prosus or the proposed merger with Takeaway.com were acceptable.

On 5 August 2019 that Just Eat and Takeaway.com reached an agreement on the terms of a recommended all-share combination, which would see the formation of one of the largest food delivery companies in the world.

Prosus said its offer reflected the fall in price of Takeaway.com’s shares, since the agreement to acquire Just Eat was announced, as well as continued market volatility and declines seen in the growth of the online food delivery sector.

Frederik Nassauer, investment director at Aberdeen Standard, was quoted as saying: “We believe Prosus’s current all-cash offer of 710p significantly undervalues the group, ascribing little value to the maturing yet highly cash-generative UK operation, the innovative and fast-growing Canadian business, as well as Just Eat’s highly valuable iFood stake in Brazil.”

Earlier this week, investment firm Cat Rock Capital Management – owner of approximately 17.7 million shares of the common stock of Just Eat – also said it believed the offer by Prosus “underscores the significant long-term potential and strategic value of Just Eat’s business”.

“However, unlike the Takeaway.com offer, the Prosus offer does not allow Just Eat shareholders to participate in any future value creation through the equity of the combined businesses. Prosus should share this future value creation with Just Eat shareholders by paying a fair premium,” it said.