Telenor Group agreed to merge its classified advertising businesses in Malaysia, Vietnam and Myanmar with marketplace app provider Carousell, in a cash and equity deal valuing the combined entity at $850 million.
Under the agreement, Telenor will merge its small ads platforms run by subsidiary 701Search with Carousell’s existing service and take a 32 per cent stake in the combined entity. Cash terms were undisclosed.
The deal will make Telenor Carousell’s largest minority shareholder with other backers including online giant Rakuten.
In a statement Carousell estimated the value of the combined company at $850 million.
Carousell allows users to quickly sell items photographed with smartphone cameras, including the ability to chat with potential buyers on its iOS and Android apps. 701Search operated classified advertising brands in Malaysia, Myanmar and Vietnam with all three set to retain their identity following the sale.
Co-founder and CEO of Carousell Quek Siu Rui said the deal cemented its sector leadership across eight markets in south east Asia, Hong Kong and Taiwan.
He added, given Telenor’s local market experience, “we are confident that together we will create an even more vibrant marketplace for the community across Malaysia, Myanmar and Vietnam.”
Johan Rostoft, Head of Online Classifieds at Telenor Group, stated: “This transaction presents an attractive opportunity for us to take the next step in our marketplace journey, and it also simplifies Telenor’s portfolio.”Subscribe to our daily newsletter Back