Detailed Stock Exchange announcement – addition to the notice release 11 May 2017 “Schibsted increases ownership in fast growing online classifieds market leader in Brazil, OLX, to 50 percent.”
Key financial information for the Brazilian operation (Silver Brazil JVCO BV and subsidiaries) and the Chilean operation (Yapo.cl SpA) is disclosed in the table below (figures for 100% of the operations).
|Operating profit (loss)||(208)||(474)||(19)||(42)||(33)|
|Net profit (loss)||(230)||(486)||(13)||(48)||(33)|
Before the transaction, the Brazilian and Chilean operations were both joint ventures of Schibsted accounted for using the equity method of accounting. The financial information presented is based on the financial reporting used in recognizing those operations in the consolidated accounts of Schibsted in the relevant periods. Silver Brazil JVCO BV was established in January 2015 when the Brazilian operation of Schibsted and Telenor merged with the Brazilian operation of Naspers and the financial information presented is for the combined entity for the period after establishing. The non-current assets in Brazil are primarily intangible assets recognized in connection with the January 2015 combination of operations. After the transaction, the Brazilian operation will still be a joint venture accounted for under the equity method of accounting and 50% of its net profit will be recognized as share of profit (loss) of joint ventures by Schibsted. The Chilean operation will be consolidated.
701 Search has been an associate of Schibsted. The share of net loss recognized in the consolidated financial statements of Schibsted under the equity method of accounting is NOK 174 million, NOK 15 million and NOK 34 million for the years 2014, 2015 and 2016, respectively. The figures are not comparable as certain markets were transferred from 701 Search in January 2015.
Gains of approximately NOK 1.3 billion will be recognized in the consolidated financial statements of Schibsted in upon closing, which is expected in Q2 2017 related to gain on sale of 701 Search and gain on remeasurement of previously held ownership interest in the Chilean operation. Total assets, primarily in the line items investments in joint ventures and intangible assets, will increase by approximately NOK 4.8 billion as a result of ownership interests acquired and remeasurement of previously held ownership interests.
Board members of Silver Brazil JVCO BV: Martin J Scheepbouwer, Ariel Lebowits, Ragnar H Korsaeth, Olivier F Aizac, Alejandro C.F. Oxenford and Gianpaolo Santorsola
CEO of Silver Brazil JVCO BV (in operating entity Bomnegocio Atividades): Andries Oudshoorn.
Number of employees in Silver Brazil JVCO BV and subsidiaries: 483
Board of Yapo.cl SpA: Juan Elias
CEO of Yapo.cl SpA: Juan Elias
Number of employees in Yapo.cl SpA: 99
Oslo, 16 May 2017
Jo Christian Steigedal
Head of IR