Naspers in India spending spree
SA based internet and media firm, Naspers, has outlined its ambition within the Indian market by bolstering its assets in the region.
Earlier this week, Naspers reported consolidated revenue growth of 26% for the year ended March 2014, to R62.7 billion, driven by its internet and pay-television businesses.
Earnings before interest, tax, depreciation and amortisation (ebitda) declined 18% to R6.4 billion, while trading profit was 34% lower at R3.9 billion.
Naspers pointed to development spend of R7.7 billion – up 79% on last year – devoted particularly to e-commerce and digital terrestrial television (DTT).
In June 2013 the group’s subsidiary MIH India acquired a 100% interest in redBus, an Indian online ticketing platform. The fair value of the total purchase consideration was R1 billion in cash, Naspers said.
It noted that during June 2013, it exercised full control over MIH India, which operates e-commerce platforms under the ibibo brand, for R321 million, having previously been a joint venture with Tencet Holdings.
Naspers said it also upped its stake in India based e-commerce venture, Flipkart, by an additional 8.6% in July 2013, for R1.4 billion in cash.
And during May 2014 the group invested a further R543 million in cash in Flipkart. The group now has a 17.7% interest in Flipkart on a fully diluted basis.
UAE
In July 2013 the group acquired an additional interest of 28.6% in Dubizzle, an online classifieds platform centred on Dubai. The group’s total interest in Dubizzle increased to 53.6% and the group now accounts for Dubizzle as a subsidiary.
The fair value of the total purchase consideration was R939 million, consisting of R477 million in cash for the additional interest and R462 million being the acquisition date fair value of the existing interest held in Dubizzle.
In June 2013 the group acquired an additional 6.1% interest in Souq Group Limited, an online retailer, marketplace and payment platform business, with operations in the UAE, Saudi Arabia, Egypt and Kuwait, for R296 million in cash.
And during March 2014 the group acquired a further interest of 11.8% in Souq Group Limited for R911 million in cash.
The group now has a 47.6% interest in Souq Group.
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