Seth Klarman Hedge Fund Buys $645 Million Stake in Just Eat Takeaway

Ivan Levingston and Lisa Pham, Bloomberg News

A food delivery courier for Just Eat Takeaway.com NV travels along Brick Lane in London, U.K., on Tuesday, Sept. 29, 2020. Covid-19 lockdown enabled online and app-based grocery delivery service providers to make inroads with customers they had previously struggled to recruit, according the Consumer Radar report by BloombergNEF. Photographer: Hollie Adams/Bloomberg , Bloomberg

(Bloomberg) -- Seth Klarman’s hedge fund, Baupost Group, bought a 3.5% stake in Dutch food-delivery company Just Eat Takeaway.com NV.

The Boston-based firm acquired the stake in a transaction dated Aug. 4, according to a regulatory filing on Thursday. The shares were valued at about 549 million euros ($645 million) as of Wednesday’s closing price.

Companies that let customers order groceries and restaurant meals online have surged in the last year as users turned to the apps during pandemic lockdowns. Financial results from rivals such as Delivery Hero SE and Deliveroo Plc this week have shown that consumers are keeping the habit even as restrictions on shopping and indoor dining lift in many markets.

Read More: Klarman Sees Bargains, Baupost Seeks More Capital During Chaos

Still, Just Eat Takeaway’s shares have declined about 19% so far this year. The Amsterdam-based company said order growth slowed in the second quarter from the previous period. In June, it completed a $7.3 billion acquisition of U.S.-based delivery company Grubhub.

Shareholder Cat Rock Capital Management LP has called Just Eat Takeaway “deeply undervalued,” saying the delivery firm “can quickly and materially improve its standing in the capital markets by improving transparency, selling non-core assets, and exploring strategic options.”

A representative for Just Eat Takeaway didn’t immediately respond to a request for comment. A spokesperson for Baupost didn’t immediately respond to a request for comment before regular U.S. business hours.

Just Eat Takeaway rose 0.8% to 74.63 euros at 11 a.m. in Amsterdam trading.