Telecom major Telenor Group has started monetizing its online classifieds investment and will show a gain of NOK 3.5 billion in Q2 2017.
The strategy of Telenor is to hold on to the investment if it has full control and exit from the market if it does not have full ownership of the online classifieds business.
Telenor, which made investment in online classifieds business in 2013, is exiting the Latin American joint venture and acquiring Schibsted’s equity stake in the joint ventures in Malaysia, Vietnam, and Myanmar. Telenor will be receiving $406 million or approx. NOK 3.4 billion from the transaction with Schibsted.
Telenor has entered into an agreement with Singapore Press Holdings to acquire their share in the online classifieds sites in Malaysia, Vietnam and Myanmar for $110 million or approx. NOK 0.9 billion.
Telenor will show a gain of NOK 3.5 billion due to the disposals and an impairment of NOK 0.3 billion relating to the Asian assets in the second quarter 2017. The transactions announced today will give a cash contribution of around NOK 2.5 billion in Q2 2017.
Telenor will own 100 percent of the online classifieds services Mudah (Malaysia), Chotot (Vietnam), OneKyat (Myanmar) and ImSold (Malaysia and Vietnam). Telenor, Schibsted, Naspers and Singapore Press Holdings will remain partners in the online classifieds assets in Thailand and Indonesia.
In 2013, Telenor entered into agreements with Schibsted and Singapore Press Holdings to create joint ventures within online classifieds in Latin America and Asia. In 2015, the partners tied up with Naspers to combine platforms in several markets, including Brazil.
“As part of our efforts to simplify Telenor’s business portfolio and to focus on business development in geographical areas of key importance, we wish to concentrate our online classifieds initiatives to fully owned assets in the Asian region,” said Jorgen C Arentz Rostrup, chief financial officer of Telenor Group.
