BUSINESS MAVERICK: Prosus aims to become a classifieds gorilla

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Shareholder activists are agitating for eBay to unbundle its classifieds business. JSE-listed Prosus is in the running to acquire it.

JSE-listed Naspers, through its Amsterdam-listed spinoff Prosus, is in contention to acquire eBay’s classified advertising business for an estimated $8-billion to $10-billion.Others on the acquisition trail include Oslo-listed Adevinta, backed by Norwegian media house Schibsted and European publishing house Axel Springer backed by the private equity firm KKR.

Naspers began investing in the online classifieds space in 2008 when it acquired Polish eCommerce platform Allegro. But the step-change came in 2010 when it acquired a majority stake in global classifieds player OLX for an estimated $40-million. OLX was seen as the eBay and Craigslist alternative for the world outside of the United States.quisitions continued and in 2014, Naspers increased its stake in OLX to 95%, making it its premier classifieds brand.

However, should the deal go the Prosus way, some competition issues may arise, specifically with regard to Gumtree in South Africa. One fact that is not in dispute is that Prosus has a strong balance sheet and would not have to rely on risk-averse bankers to fund the deal.

 

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