Just Eat to buy Australia's Menulog for £445m

Online takeaway food company Just Eat is to buy Australian peer Menulog for £445 million ($687m) in a deal to be entirely financed by an equity issue.

Menulog has 1.4 million active consumers and 5,000 restaurants in Australia and New Zealand.

UK-headquartered Just Eat said it plans to raise £439m (AU$855m, €603m) by issuing new shares in order to fund the deal.

David Buttress, chief executive of Just Eat, said: "The acquisition of Menulog, a business with strong leadership in an attractive and fast-growing market will be an important addition to the Just Eat business."

Menulog reported revenues of £13.5m in the year ending March.

Jonathan Buxton, Partner and Head of Consumer and Retail at Cavendish Corporate Finance said: "How hungry Just Eat is to expand internationally is perfectly illustrated by its decision to snap up Australian takeaway market leader Menulog for such a mouth-watering price.

"Culturally it should be a good business fit, as the Australian takeaway delivery market has parallels with the UK, including a strong takeaway food culture, fast-growing e-commerce adoption and a fragmented restaurant market."

Just Eat shares fell by more than 5% in early morning trading on the back of the announcement and are currently trading around the 477 pence in London.