DURBAN – Prosus, the worldwide web belongings division of Naspers, is again on the acquisitions path, six months after strolling away from the bidding struggle to amass Simply Eat.
Unconfirmed experiences on Friday stated Prosus is among the three corporations within the operating to amass eBay’s classifieds enterprise.
Sources near the matter stated Prosus was within the driving seat after it submitted the very best bid, within the area of $8billion (R133.25bn).
Prosus had failed to answer queries by the point of going to print.
The eBay board met late on Friday, probably to weigh up the bid from Prosus, one from a personal fairness consortium backed by Blackstone Group, Permira and Hellman & Friedman, and a bid from Adevinta.
Peter Takaendesa, the pinnacle of listed equities at Mergence Funding Managers, stated on Friday that Prosus’s expression of curiosity in eBay’s classifieds belongings could be broadly according to the corporate’s technique, because it has clearly communicated its technique to diversify its portfolio of investments away from the present Tencent dominance by considerably investing in three e-commerce verticals: classifieds, meals supply and funds.
“If confirmed that the acquisition would materially develop Prosus’s international classifieds enterprise, given eBay has sturdy positions in quite a few European markets, Canada and Mexico. A few of eBay’s manufacturers have been round because the 1990s, and right here in South Africa now we have been uncovered to their Gumtree model since 2005,” Takaendesa stated.
He stated there is likely to be issues, nevertheless, that the deal would deviate from Prosus’s technique of concentrating on high-growth potential belongings on condition that eBay’s classifieds belongings are considerably extra mature in contrast with Prosus’s present classifieds belongings, which have been primarily in rising markets.
“Nevertheless, we consider eBay’s belongings would considerably enhance scale and profitability of the mixed Prosus classifieds portfolio, indirectly just like the dynamics we noticed with the Russian classifieds firm Avito transaction, which took Prosus’s possession to 100 % of that asset.
“Our view is that it’ll all come all the way down to the value that shall be paid, and Prosus has proven stable self-discipline previously, with the Simply Eat transaction as a latest instance the place they withdrew from the bidding struggle,” he stated.
Takeaway.com gained the bid for Simply Eat in January with a £5.9bn (R123.47bn) all-share provide, translating into 889pence a share, beating Prosus’s provide of 800p.
However Takaendesa stated he believed that Prosus is likely to be in a robust place to amass the enterprise, as its chief govt, Bob van Dijk, got here from eBay and may know the standard of these belongings higher than some other participant available in the market.
“Prosus ended the 12 months to March with web money of $4.5bn, so it will probably comfortably afford the speculated valuation ranges for the eBay classifieds belongings, however what’s extra essential is paying the fitting valuation for the belongings such that the group can generate good returns for its stakeholders over the long run,” he stated.
Prosus closed 0.11% weaker at R1607.76 on the JSE on Friday. Extra reporting by Bloomberg