eBay is selling half its shares in Adevinta.
eBay Inc. is helping a Norway-based global platform for online classified ads go private.
The e-commerce giant said it would sell half of its stake in Adevinta for about $2.2 billion to private equity firms Permira and Blackstone and would exchange the remaining shares for an equity stake of approximately 20% in the company once it goes private. Under the deal, the two firms will acquire all the publicly traded shares of Adevinta.
The offer values eBay's entire stake in Adevinta, which operates digital marketplaces in 16 countries, at approximately $4.3 billion. The deal is expected to close in the second quarter of next year. (In a 2021 sale, eBay let Adevinta pay it $2.5 billion in cash and a 44% equity stake in Adevinta, equivalent to approximately 540 million shares, for a total value of about $9.2 billion.)
For six months following the closing of the proposed transaction, Permira, Blackstone and their co-investors have a right to purchase from eBay an additional number of shares in privatized Adevinta, which would reduce eBay's ownership position to approximately 9.99%.
The purchase price for those additional shares would be the same price paid to eBay for its Adevinta shares at closing and would represent proceeds of more than $1 billion. eBay says it intends to use the cash proceeds from this prospective transaction for general corporate purposes.
"We strongly support this offer, which we firmly believe is in the best interests of our shareholders," said Jamie Iannone, CEO at eBay. "We would sell half our stake for approximately $2.2 billion in cash at a premium of more than 50% to the undisturbed price of Adevinta shares. We would recognize immediate value in the short-term, while continuing to maintain a financial interest in Adevinta alongside Schibsted and other world-class investors."
The offer is being made through Aurelia Bidco Norway AS, a Norwegian private limited liability company established for the purpose of this transaction. LionTree Advisors LLC is acting as financial advisor to eBay. Wachtell, Lipton, Rosen & Katz, and Advokatfirmaet Thommessen AS are acting as legal advisors to eBay.
The offer is subject to the satisfaction or waiver of certain regulatory approvals and other customary closing conditions. eBay expects the sale to be completed in the second quarter of 2024.