Schibsted, Naspers, Telenor and Singapore Press Holdings (SPH) today announced an agreement to establish joint ventures for the development of their online classifieds platforms in four key markets – Brazil, Indonesia, Thailand and Bangladesh.
The transaction will bring substantial benefits to consumers. Combining the platforms will make it faster and easier than ever for people to trade and turn their items into cash. They would be able to choose from a wider selection of items and be more successful in selling their own items to a larger audience of buyers. By coming together, the businesses would also be able to share cost, expertise and people to more effectively build awareness of the benefits of a vibrant online classifieds offering to consumers.
The ownership structure in the joint ventures will be as follows:
- Brazil: 50.0% Naspers and 50.0% SnT Classifieds*
- Indonesia: 64.0% Naspers and 36.0% 701 Search*
- Thailand: 55.9% 701 Search and 44.1% Naspers
- Bangladesh: 50.3% SnT Classifieds and 49.7% Naspers
*SnT Classifieds is an equal shareholding joint venture between Schibsted and Telenor and 701 Search is an equal partnership joint venture amongst Schibsted, Telenor and SPH.
As part of the agreement, 701 Classifieds will transfer its online classifieds business in the Philippines to Naspers, who will manage the operation. This would allow 701 Search to focus its efforts in Thailand. In certain other markets in Latin America and Asia Schibsted, SnT Classifieds and 701 Search, respectively, acquire Naspers’ operations. At the same time, Naspers acquires the operations of Schibsted, SnT Classifieds and 701 Search in certain other markets.
Commenting on the transaction, Rolv Erik Ryssdal, CEO of Schibsted Media Group, said “Schibsted, our existing partners and Naspers have all been at the forefront in developing high quality, online market places for consumers wanting to buy and sell in a number of emerging markets. By joining forces, we will be able to further develop these market places even more efficiently”.
Schibsted expects that the transaction will result in a gain in the range of NOK 300-400 million. The transaction is not expected to have any significant tax effects, and it is cash neutral. The investment spend affecting Schibsted’s profits is likely to go down significantly going forward. However, we are prepared to invest necessary amounts in order to develop profitable markets.
The transaction is subject to EU approval and is expected to close in early 2015.
Conference call details:
A joint conference call has been scheduled for 09:00 GMT on 14 November 2014.
The company representatives on the call will be:
- Schibsted: Rolv Erik Ryssdal (CEO), Trond Berger (CFO) and Terje Seljeseth (CEO Schibsted Classified Media)
- Naspers: Bob van Dijk (CEO), Martin Scheepbouwer (CEO Classifieds), Mark Sorour (CIO)
Details are as follows:
Dial in 5-10 minutes prior to the start time. Confirmation Code: 1806273
United Kingdom: +44(0)20 7784 1036
USA: +1 212 444 0412
Hong Kong: +8523071 3092
Singapore: +656622 1089
South Africa: +2711 019 7076
Norway: +472350 0486
Brazil: +5511 3351 7256
Replay details (available for 7 days until 23:59 on 19 November 2014). Confirmation Code: 1806273
United Kingdom: +44 (0)20 3427 0598
USA: +1 347 366 9565
Hong Kong: +852 3011 4669
Singapore: +65 3158 1174
South Africa: +27 11 019 7025
Norway: +47 2100 0498
Anders Rikter, Director of Communications, firstname.lastname@example.org +47 920 84 996
Oslo, 13 November 2014
Jo Christian Steigedal
VP Investor Relations