Naspers through its Dutch-based technology investor Prosus is selling its Russian classified business Avito for RUB 151 billion or R45 billion to Kismet Capital Group (Kismet).
Kismet is a private investment group with a track record of investing in technology and telecommunications businesses in Russia.
All relevant regulatory approvals have been received.
The South African-based group said the closing pf the deal is expected to occur in October 2022.
“Since announcing our intention to sell Avito on 20 May 2022, our aim has been to manage the sale of the business in a responsible and orderly way,” said Naspers.
“We believe this transaction best accomplishes that objective.”
Prosus holds an effective interest of 99% in the Avito Group.
As at 31 March 2022, being the latest financial year end for Naspers and Prosus, the net asset value of the Avito Group was $1,379.9m and profits attributable to the Avito Group was $160.3m.
“It is intended that net proceeds from the Avito Group Disposal will be utilised for general
corporate purposes,” said Naspers.
Naspers, through its early-stage tech investment vehicle Naspers Foundry, announced a R40 million ($2.5 million) investment in LifeCheq, a FinTech platform empowering financial advisers to provide quality, holistic financial advice.
The investment is part of Naspers’s R1.4 billion commitment to grow South Africa’s early-stage tech ecosystem and marks Naspers Foundry’s fifth fintech investment and eleventh tech transaction since its launch three years ago.
LifeCheq plays a critical role in driving financial inclusion in South Africa by democratising access to financial advice – previously only accessible to high income earners. Accessible financial planning and advice are especially important during the current challenging economic environment.
A recent McKinsey1 consumer survey reports that 87% of South African consumers say that their current personal economic situation is stretched, 13% say they are in crisis, and 32% say they find it hard to make ends meet.