The acquisition by the Russian investment company will involve the purchase of the KEH eCommerce and its subsidiaries and Avito Holding and its subsidiaries
Prosus divests Avito to Kismet Capital. (Credit: PROSUS)
Prosus, a subsidiary of South African internet company Naspers, has agreed to sell its shareholding in Russian classifieds business, Avito, to Kismet Capital in a deal worth RUB151bn ($2.4bn).
The Dutch-based consumer internet group has signed the agreement through its affiliates OLX Global, KEH Holdings and MIH Technology Holdings with Radio Reklama Vologda and Infrastructure Holding-2, subsidiaries of Kismet Capital.
The company’s intention to sell its Russian classifieds businesses and operations was announced earlier in May 2022.
The capital for the deal will be satisfied through a combination of available cash resources and debt financing procured by Kismet Capital.
The acquisition by the Russian investment company will involve the purchase of the KEH eCommerce and its subsidiaries and Avito Holding and its subsidiaries.
Prosus owns an effective stake of 99% in Avito.
Avito’s net asset value as of Naspers and Prosus’ recent financial year-end was $1,379.9m, and its share of profits was $160.3m.
Prosus stated: “It is intended that net proceeds from the Avito Group Disposal will be utilised for general corporate purposes.”
The transaction, which has received antitrust and financial regulatory approvals, is expected to close this month.
Earlier this month, Prosus announced the termination of PayU’s previously announced $4.7bn acquisition of Indian digital payments provider BillDesk due to the failure of meeting certain preceding conditions.
PayU is the payments and fintech business of Prosus.
With the business combination, PayU is expected to create a financial ecosystem capable of handling four billion transactions annually.