Schibsted’s deals close with Telenor and SPH

01 Jul 2017

Schibsted and Singapore Press Holdings (SPH) announced separately yesterday that their transactions of May 11 and May 12 (our reports here and here) have closed.

For Singapore Press Holdings that means the company no longer owns shares in 701Search, the company that controls classified sites Mudah in Malaysia, Cho Tot in Vietnam and operations in Myanmar. Telenor paid $110 million U.S. for Singapore Press Holdings shares. Telenor also took over Schibsted’s shares in 701Search in a swap with Schibsted.

Telenor paid $110 million U.S. for the shares of Singapore Press Holdings. At the same time, Telenor took over Schibsted’s shares in 701Search as one leg of an asset swap.

Telenor, Schibsted, Naspers and Singapore Press Holdings will, however, remain partners in the online classifieds assets in Thailand and Indonesia. For Telenor, the net result is a consolidation of its interests in Asia.

For Schibsted the closing of the deal means that – after the swap with Telenor – it owns 50 percent of OLX Brazil and 100 percent of Yapo.cl in Chile, after buying the Norwegian telephone company Telenor’s shares. In Brazil, Schibsted co-owns OLX Brazil with Naspers, but in Chile, Schibsted is the 100-percent owner in Yapo.

The closing also means that Schibsted has paid Telenor $400 million U.S. by taking up that amount of new debt. Schibsted will show gains of about NOK 1.3 billion in its consolidated financial report for Q2 of FY2017, related to the sale of 701Search and revaluation of the previously-held interest in the Chilean operation.

The Schibsted news release here.

The SPH news release here.

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Lars Herlin

Lars Herlin is an AIM Group senior analyst for Europe, and our expert on Schibsted. He had a long career in journalism at Expressen, Svenska Dagbladet and VeckansAffärer, and served as managing editor and later managing director of Gotlands Allehanda.