Apollo among possible suitors for Just Eat's Grubhub: sources

JUST Eat Takeaway.com's US unit Grubhub is attracting preliminary interest from private equity firms including Apollo Global Management, according to people with knowledge of the matter.

New York-based Apollo is among possible suitors evaluating the business, the people said, asking not to be identified because the information is private. Just Eat Takeaway may struggle to get a price near the US$7.3 billion it paid for Grubhub last year, with some suitors considering offers close to US$1 billion, the people said.

Several investment firms have been considering teaming up with Grubhub co-founder Matt Maloney, the people said. While a number of potential buyers are studying Grubhub, it's unclear which will decide to proceed with formal offers, the people said.

A representative for Apollo declined to comment, while a spokesperson for Just Eat didn't immediately respond to requests for comment.

Amsterdam-based Just Eat Takeaway has seen its shares sink 74 per cent in the past year, amid a slowdown in growth and broader plunge in the value of technology stocks due to rising interest rates and concerns over an economic slowdown. The company also faces internal turmoil after it launched an investigation into its chief operating officer's personal conduct and its chairman stepped down last month.

Shareholders including Cat Rock Capital Management LP have called for the company to separate from Grubhub since last year. In April, Just Eat said it was considering a partial or full sale of the Grubhub unit. BLOOMBERG