The Dutch food delivery company Prosus has agreed to sell a majority stake in the Russian classified ads site Avito to the Russian internet company Mail.ru Group, Prosus said in a statement on Tuesday.
The deal will see Prosus, which is a subsidiary of the South African internet and media group Naspers, sell 60 percent of Avito for $1.4 billion in cash. The sale values Avito at $2.3 billion. dutch prosus russia avito 6bprinsloobloomberg
Russia’s internet economy is growing rapidly, and Dutch company Prosus is investing $1.3 billion to buy a controlling stake in Avito, the country’s largest online classifieds site. The deal will give Prosus a 61% share of Avito, which is majority-owned by Swedish investment firm Kinnevik. dutch prosus russia avito 6bprinsloobloomberg
This is a big bet on Russia’s e-commerce potential by Prosus, which is the international arm of South African media and internet group Naspers.
In recent years, the Russian internet company Yandex has been on the rise, challenging Google for supremacy in the search engine market. Yandex’s success is due in large part to its focus on the Russian market and its understanding of Russian users’ needs.
Now, Yandex is looking to expand its reach even further with the acquisition of Avito, a popular classifieds site in Russia.