Schibsted Media Group and Telenor are teaming up in a joint venture to provide high-quality online classified services to people in selected key markets in South America and Asia. The new company will be called SnT Classifieds. At the same time Telenor joins Schibsted and Singapore Press Holdings (SPH) in the South East Asian online classifieds joint venture 701 Search Pte (701).
The strategic partnerships are expected to strengthen the operational and financial basis for Schibsted Media Group's online classifieds expansion strategy with the aim to win number one positions in emerging markets.
While Schibsted brings extensive knowledge of and experience from the online classifieds business, Telenor contributes with significant emerging market experience and deep insight into mobile internet technology and usage. Through its strong media presence in Singapore and across South East Asia, SPH will continue to bring substantial value to the partnership through extensive local insight and a strong regional network.
- We believe we will succeed in bringing our popular products and proven business-models to rapidly developing economies in South America and Asia. These joint ventures formed by three knowledge- driven and industrial companies give us even more financial and operational strength to pursue attractive number one positions. We can do more, and we can move faster. This will improve our chance to succeed, CEO Rolv Erik Ryssdal in Schibsted Media Group says.
The two joint ventures will have the following structure:
SnT Classifieds will be owned 50/50 by Schibsted and Telenor. Schibsted will contribute the South American assets Bomnegocio.com (Brazil) and Yapo.cl (Chile) into the joint venture. Telenor will contribute its Bangladeshi asset Cellbazaar.com. The transaction implies a valuation of the assets contributed by Schibsted of EUR 170 million and will result in a gain for Schibsted of around EUR 85 million, which is expected to be recognized in Q4 2013. The parties have committed to a pro rata funding of the joint venture going forward.
SnT Classifieds will be governed through a Board of Directors with equal representation from Schibsted and Telenor. Terje Seljeseth, CEO of Schibsted Classified Media, will be the Chairman of the Board of Directors of the new company. The CEO of the new company will be Andries Oudshoorn, currently the CEO of Schibsted's online classified site Bomnegocio.com in Brazil.
In 701 Telenor will enter as an equal partner with Schibsted, Telenor and SPH with each owning 1/3 of the company. 701 today operates Mudah.my (Malaysia), Berniaga.com (Indonesia), Ayosdito.ph (The Philippines) and Chotot.vn (Vietnam). 701 was established in 2006 as a 50/50 joint venture between Schibsted and SPH. The transactions imply an enterprise value of the company of EUR 180 million, and will result in a gain for Schibsted of around EUR 30 million, which is expected to be recognized in Q4 2013.
The transactions are subject to relevant merger control clearances and are expected to be closed during Q4 2013.
A conference call for investors and analysts will be held 30 September 2013 at 10:00 CET. Please dial in at the following numbers:
International: +44(0)20 3427 1915
From Norway: 800 56053
Confirmation Code: 5362052
A recording of the call will be made available at www.schibsted.com/ir.
Contact persons investors/analysts:
Trond Berger, CFO. Tel: +47 916 86Â 695
Jo Christian Steigedal, VP Investor Relations. Tel: +47Â 415Â 08Â 733
Contact person media:
Anders Rikter, VP Communications and Public Affairs: Tel: +47 920 84Â 996
Oslo, 30 September 2013
Jo Christian Steigedal
VP Investor Relations
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: Schibsted via Thomson Reuters ONE