Just Eat Takeaway’s shares went up by more than 7% on Wednesday after the company announced that it is exploring a full or partial sale of Grubhub, ten months after it bought the delivery service for $7.3 billion.
The board “confirms its alignment with shareholders in wanting to both create and realize value from the Company’s highly attractive portfolio of assets,” the company said in a trading update.
“As such, management is currently, together with its advisers, actively exploring the introduction of a strategic partner into and/or the partial or full sale of Grubhub.”
The announcement comes on the heels of growing calls from prominent shareholders to divest its Grubhub business — less than a year after the company competed with key players such as Uber and Delivery Hero to acquire Grubhub. The calls for divesture have come as the company has lost more than two-thirds of its value in just the past year.
Cat Rock Capital, an activist investor that has a 6.5% stake in Just Eat Takeaway, was one of the top investors that asked the company to sell Grubhub and refocus its business on Europe.
The company noted that it could not guarantee whether a sale would be agreed upon and when it might happen.