Internet auction firm $946m takeover
Online auctioneer Tradus today agreed a £946m (€1.3bn) takeover by South African media firm Naspers in the latest sign of renewed interest in internet companies.
Tradus, formerly known as QXL Ricardo, which conducts internet auctions across 12 European countries including Russia and Poland, has backed an £18-a-share offer from the company which owns the Daily Sun newspaper and pay TV firm Multichoice.
The deal is the latest step in the turbulent history of Tradus, which offers online auctions trading 24 hours a day allowing buyers to bid on goods and services ranging from computer software to collectables and sports equipment.
The firm, which employs about 400 workers and was founded by former Financial Times journalist Tim Jackson in 1997, became a dot.com darling when it listed on the stock market in 1999.
The company’s market value soared to £2bn (€2.8bn) in early 2000 on hopes it would become the European eBay but was worth just £62m (€86.8m) eight months later as internet stocks crashed worldwide.
It has since gradually mounted a recovery and today’s cash deal represents a 19% premium on its price of 1510p-a-share, when the firm first announced it was in takeover discussions on November 6.
The deal requires approval from Tradus shareholders but the board has recommended investors accept the offer.
Naspers, which already has internet operations in Africa, China and Russia, said the buyout would help it expand in central and eastern Europe.
Cobus Stofberg, Naspers chief executive, said: “The operations of the Naspers Group and Tradus complement each other perfectly and significant advantages can be obtained by aligning Tradus’ businesses with Naspers’ other internet investments in central and eastern Europe.”
