South African media holding paid $1.2 billion for control in Avito


Moscow. October 23. South African media holding Naspers increased its stake in Avito to 67.9% from 17.4%, buying the shares of other shareholders for $1.2 billion Among sellers – the Swedish investment Fund Kinnevik, which owned 31% of Avito. On Friday, Kinnevik announced that Naspers sold its entire package for $846 million.

All Avito as part of the transaction was valued at $2.7 billion, which includes $240 million to the accounts of the company.

Naspers itself did not name the shareholders who sold her to 50.5% Avito. Among the investors were also Avito funds Vostok Nafta, Baring Vostok and Accel Partners. Vostok Nafta reported that it was not involved in the transaction and maintained a 13.3% stake.

The transaction is subject to approval by the Antimonopoly service of the Republic of South Africa and South African reserve Bank, said Naspers. The transaction may be paid from its own funds and undisbursed debt. The company also is considering alternative long-term financing and does not expect a substantial increase of the debt portfolio in the medium term.

Naspers CEO Bob van Dijk, was quoted in the statement, said that the company believes in the long-term prospects and Avito expects a significant growth of the Russian market of ecommerce, as more and more people have access to the Internet.

Avito.ru – the largest Russian Internet-service classified ads, monthly audience of approximately 35 million unique users. Currently, more than 50% of the traffic resource comes from mobile devices compared with 32% at the beginning of 2014.

The company’s revenue for 2014 amounted to $76.5 million (up 76%), the EBITDA margin was 50.6 per cent.