Just Eat Takeaway has announced it will delist itself from the Nasdaq. The rare delisting comes as the company is under cost-cutting pressure, with the food delivery industry feeling the squeeze as lockdowns across the world continue to end. Here’s what you need to know about Just Eat’s delisting:
- What is a delisting? A delisting is when a company is removed from trading on a stock market. Delistings can be involuntary, but this is a voluntary move on Just Eat’s part.
- What market is Just Eat being delisted from? Just Eat will be delisted from the Nasdaq, where it currently trades under the ticker GRUB. (In 2021, Just Eat bought Grubhub for $7.3 billion).
- Why is Just Eat delisting from the Nasdaq? In a few words? To save money. Just Eat feels the cost of being a publicly traded company in America is too great. Here’s how they phrased it: “Both the delisting and ultimately the deregistration are expected to create a substantial cost saving as well as a reduction in compliance requirements. The costs and expenses associated with being a publicly traded company in the US, the auditing, legal and other costs associated with continuing to make SEC filings, and the burdens placed on Company management to comply with the continued listing and reporting requirements in the US are significant and are not considered to be offset by the benefits from the US listing.”
- Will Just Eat continue to be a public company? Yes. Its shares will continue to be listed on stock exchanges in London and Amsterdam.
- What happens to shares of Just Eat when it delists? Nothing, according to IG. When a company delists its shares, the shares still exist and the owners of those shares still own them. But in order to trade them, the stockholder will need to do so on an over-the-counter (OTC) market.
- When Will Just Eat delist its shares? Just Eat says the current time frame is within the first half of 2023.