Norwegian media company Schibsted has announced the closure of its transactions to acquire 50% of the online marketplaces OLX Brazil alongside 100% of Chile's classified marketplace Yapo.cl which both offer a range of items including cars, houses and general items.
The deal was first announced on 11 May 2017 and has now passed, giving the media company a stake and part-stake in two large South American marketplaces.
Alongside its acquisition of both OLX and Yapol, is Schibsted's divestment of the 33.3% ownership stake in 701 Search to the Norwegian telecommunications company Telenor. 701 Search is the company that controls Mudah, one of Malaysia's largest marketplaces, along with Cho Tot in Vietnam and operations in Myanmar.
The transactions closed on 30 June 2017 with gains of approximately NOK 1.3 billion to be recognized in the consolidated financial statements of Schibsted for Q2 2017, related to gain on sale of 701 Search and gain on re-measurement of previously held ownership interest in the Chilean operation.
The amount will be reported on the "Other income and expenses" line in the consolidated income statement.
The transaction implies a cash payment to Telenor of USD 400 million with Schibsted financing the amount with debt.