Prosus, the Dutch-based technology investor owned by Naspers, said it has agreed to sell its Russian online marketplace Avito for 151 billion roubles (R45-billion), to Kismet Capital Group.
Avito had been one of Prosus’s most valuable investments, with an estimated valuation of about US$6-billion before Russia’s invasion of Ukraine in February led the company to cut ties and seek a sale of the property.
The buyer, Russian investment firm Kismet, was founded by Ivan Tavrin, former CEO of telecommunications company MegaFon.
Tavrin said in a statement that the purchase was in line with Kismet’s strategy of investing “in high-tech market leaders with significant growth potential”.
Kismet said it had permission for the deal from Russia’s Federal Antimonopoly Service (FAS) and a government commission on controlling foreign investment in the country.
It said the transaction was financed and settled by a banking consortium led by Russia’s state-owned agricultural sector lender Rosselkhozbank.
Several Western companies opting to exit the Russian market have taken significant financial losses in doing so. French food company Danone on Friday said that a deal to cede control of its dairy food business in Russia could lead to a write-off of up to €1-billion, while Japanese carmaker Nissan this week offloaded its assets to the Russian state, taking a loss of around $687-million.
Read: Prosus to sell Russia’s Avito
Prosus and its parent, Naspers, said the sale will close this month. “Our goal has been to manage the sale of the business in a responsible and structured way,” Naspers said in a statement. “We believe that this is best achieved through this deal.”
Avito, Russia’s largest online marketplace, has around 5 000 employees and 90 million users. — (c) 2022 Reuters