Tavrin's Kismet Capital Group agrees to buy Avito for 151 bln rubles

MOSCOW. Oct 17 (Interfax) - Prosus, an investment group controlled by South African holding Naspers, has reached an agreement to sell Russian classified ads service Avito to businessman Ivan Tavrin's Kismet Capital Group for 151 billion rubles, Prosus said in a statement.

The transaction, which is expected to be closed in October 2022, has been approved by the Federal Antimonopoly Service (FAS) and the Russian government commission for control over foreign investment, Kismet Capital said in a press release.

"Financing of the transaction and settlements on it have been arranged by a consortium of banks led by Russian Agricultural Bank. The transaction and settlements on it are in the final stage," Kismet Capital said. The deal is expected to close in October.

"Avito Group, which includes Keh Ecommerce LLC and Avito Holding LLC with all their subsidiaries and affiliates, will be completely transferred to the control of a new shareholder and will continue its operations as an independent private Russian IT company," Avito said in a press release.

Avito's new owner intends to adhere to the current long-term strategy for the platform's development, and the current executive team led by CEO Vladimir Pravdivy will continue to run the company.

Prosus has been looking for a buyer for Avito since May. Avito's press service said at the time that Prosus was looking for a buyer for its Russian asset or part of it.

Bloomberg, citing sources, reported in the summer that Russian Internet group VK and a company affiliated with billionaire Vladimir Potanin had shown interested in Avito.

Avito's main legal entity in Russia is Keh Ecommerce LLC, which is wholly owned by Netherlands-based OLX Global B.V., which in turn is owned by Prosus. In late March it was reported that OLX Group had decided to end its involvement in operations in Russia and, consequently, spin off Avito into an independent company. Naspers consolidated Avito in 2019.