Prosus to buy the remaining 33.3% stake in Brazilian company iFood for $1.5 billion

Prosus to buy the remaining 33.3% stake in Brazilian company iFood for $1.5 billion

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(Ecofin Agency) – 9 years after its initial investment in the Brazilian meal delivery platform iFood, the technological investor Prosus is strengthening its stake in the company, and intends to become its main shareholder.

Investor Prosus, listed secondarily on the Johannesburg Stock Exchange and majority-owned by the South African group Naspers, has indicated that it wants to acquire the remaining 33.3% stake in iFood. It is a Brazilian food delivery company (meals and groceries).

Prosus was a shareholder there with about 62.24% of shares held indirectly through the Brazilian investor targeting technology companies, Movile. At the end of this operation, Prosus will become the main shareholder of the Brazilian company.

“Our increased stake reflects our confidence in iFood’s long-term potential. We are excited to continue to be an active, supportive partner for iFood as the company enters its next phase of innovation and growth,” commented Bob van Dijk, Managing Director of Prosus.

And to add: “we first invested in iFood almost ten years ago and during this period, the leaders of this structure have built a food delivery company that serves 330,000 restaurant partners, offers revenue opportunities to 200,000 delivery partners and delivers approximately 70 million orders each month.”

It was at the beginning of 2013 that Prosus made an initial investment of $2 million in iFood, via the investor Movile. The operation had enabled him to indirectly acquire 62.24% of shares in this Brazilian meal delivery company. “At that time, the activity of iFood Brazil was tiny compared to today (800 restaurants compared to more than 284,000 restaurants in 1200 cities)”commented Prosus in its activity report counting for the 2021 financial year.

Prosus, which has offered to acquire the 33.3% stake in iFood from minority shareholder Just Eat Holding Limited, will pay nearly 1.5 billion euros ($1.5 billion) in cash plus an additional sum up to 300 million euros in connection with this transaction. Once finalized, Prosus and its affiliate, Movile, will fully own iFood.

In 2021, iFood’s revenue, in local currencies and excluding M&A, grew 205%, year-over-year. The company took advantage of the covid-19 period to strengthen its market share and presence in Brazil.

According to Larry Illg, General Manager of the Food Division at Prosus, (Prosus Food), Brazil’s food delivery industry has grown significantly over the past four years. According to him, there are opportunities for expansion both in the food delivery sector, in restaurants and also in areas such as groceries and fast food.

Chamberline Moko

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