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Naspers subsidiary Prosus reached an agreement to buy a 33% stake in Brazilian food delivery behemoth iFood from its one-time acquisition target and rival Just Eat for around R30 billion.
If the Just Eat shareholders approve the deal, Prosus' Brazilian company Movile will fully own iFood, the country’s largest food delivery platform. It has an 80% market share, dominating global operations like UberEats.
The deal is for €1.5 billion (around R25 billion) in cash, and €300 million (around R5 billion) more based on iFood’s performance over the next 12 months. Movile is also entitled to a €35 million termination fee under certain circumstances.
Prosus first invested in iFood, founded by CEO Fabricio Bloisi, through Movile in 2013. On Friday, Bloisi said he was "delighted" by Prosus' belief in the company.
"We first invested in iFood nearly a decade ago and during this time Fabricio and team have built a world-class food delivery business. They have shaped the sector in Brazil, creating a platform that serves 330 000 restaurant partners, provides income opportunity for 200 000 delivery partners, and delivers approximately 70 million orders every month," Prosus CEO Bob van Dijk said in a statement.
"Increasing our stake to full ownership is a demonstration of our committed and disciplined approach to investment and reflects our confidence in the long-term potential of iFood."
"Together we will build a platform of offerings that provide Brazilian customers, delivery partners, restaurants and more, with the best experience in food, grocery delivery and fintech."
Aside from iFood, Prosus’ portfolio of online food delivery companies includes Swiggy in India, and Delivery Hero, which operates in more than 50 countries.
Prosus previously courted UK-based Just Eat to take over the food-delivery firm. Just Eat instead opted for a merger with Dutch group Takeaway.com.
