Grubhub announced on Friday that its acquisition by Netherlands-based Just Eat Takeaway.com may need more time to complete. Shares of the Chicago-based food-delivery company declined less than 1% on Friday.
In a joint statement, Grubhub (GRUB) and Just Eat said that they have extended the completion date for the transaction to December 31, 2021, from the original date of June 10, 2021. The two companies had entered into a definitive agreement on June 10 this year, under which Just Eat agreed to buy 100% Grubhub in an all-stock merger transaction valued at $7.3 billion.
Grubhub stated that “The amendment provides additional certainty for the parties regarding the timing of the necessary steps to completion, including the registration of Just Eat Takeaway.com ordinary and American depositary shares in the U.S. under the Securities Act of 1933.” (See GRUB stock analysis on TipRanks).
On Aug. 13, D.A. Davidson analyst Tom Forte raised Grubhub’s price target to $79 (14.8% upside potential) from $63 and reiterated a Hold rating. Forte updated his price target to reflect the terms of the pending acquisition transaction with Just Eat.
Currently, the Street is sidelined the stock. The Hold analyst consensus is based on 19 Holds. Following this year’s 41.5% share rally, the average price target of $69.76 implies a more moderate upside potential of 1.4% from current levels.