Naspers and its e-commerce subsidiary Prosus have alerted shareholders to their plans to exit OLX’s car classifieds business OLX Autos.<\/p>\n
The group said that it is “exploring all options” related to the business, which it says is “no longer the right approach for Prosus and its shareholders”.<\/p>\n
Naspers said that OLX Autos has been affected by ongoing market challenges, which include the higher cost of capital, high inflation and the reversal of pandemic trends.<\/p>\n
This has led to a persistent slowdown in the second-hand car market, it said.<\/p>\n
“While OLX Autos has built leading positions across many of its key markets as a result of its strong technology platforms and local focus, pursuing a global growth strategy, is no longer
\nthe right approach for Prosus and its shareholders.<\/p>\n
“Prosus will explore all options for the OLX Autos business, acknowledging that significant value exists within local markets,” it said.<\/p>\n
Naspers said that the core classifieds business of OLX Group is continuing to deliver a strong performance through the financial year with improving profitability, and added that is well-placed for
\nfurther growth and margin expansion.<\/p>\n
“Beyond OLX Autos, the core classifieds businesses in OLX are profitable, cash flow positive, and fast-growing. The exit of OLX Autos will lead to a significant improvement in the
\nprofitability profile of the Classifieds segment as a whole,” it said.<\/p>\n
While the OLX business may be doing well, this is outside the South African market. Naspers shut down OLX South Africa in February 2022.<\/p>\n
The group still owns and operates another local auto classifieds business, AutoTrader.<\/p>\n