MOSCOW, October 23. South African Internet company Naspers has become a controlling shareholder of the Russian platform Avito, increasing its stake to 67.9% through the purchase of shares from other investors for $1.2 billion About it is spoken in the message of the investor.
“Now Naspers buys back shares from existing investors to increase their share from 17.4% to 67.9% “, – stated in the message.
Initially, the company will use to close the deal and own existing debt, but also considered alternative sources of funding in the long term. However, Naspers has no plans to increase its accounts receivable in the medium term.
The deal must be approved by the competition authorities and the reserve Bank of South Africa.
“Investing in Avito at an early stage (in 2013 – approx. ed), we are interested in its further long-term development,” said Naspers CEO Bob van Dijk, stressing that the Russian e-Commerce market has great growth potential.
According to the company, the deal will increase its influence on the Russian online market.
“We believe this mutually beneficial transaction,” said in turn CEO and co-founder of Avito Filip Engelbert.
Free classified ads website Avito founded in 2008. The main owner of the company before the deal was the Swedish investment Fund Kinnevik (31.7 per cent). Avito also the investors are Accel Partners and Baring Vostok Capital Partners.