Africa also wants to take over the world, and its not only doing that within the continent but spreading out too. It was great news for Africa, a huge boost for the continent and a nice ring around its name for counterparts abroad when Naspers announced that it is now the largest shareholder in Avito.
Naspers is a company based in South Africa based company that specializes in services relating to the Internet and Media while Avito on the other hand, comes from far away in Russia and is even the leading online classifieds platform.
This announcement was made after a transaction that is well worth $1.2 million occurred between both parties, increasing Naspers’ previous stake in the company from a little 17.4% to a massive 67.9%. This move by Naspers saw shares purchased from shareholders in the company and further establishes Naspers as a strong firm when it comes to online classifieds.
“This transaction will increase our exposure to the large scale and attractive Russian online market, to the clear market leader in online classifieds and to a talented management team ,” Naspers said in an official statement via CEO Bob van Dijk.
This acquisition is funded by the money Naspers has in their cash reserves and debt facilities, and long term payment terms are also alternative options on the table.