Prosus to sell Russia’s Avito
Naspers-controlled technology investor Prosus has decided to exit its shareholding in Russian classifieds business Avito.
“On 25 March 2022, we announced the separation of the Russian classifieds business Avito from our OLX Group. Following completion of this operational separation, Prosus has now decided to exit the Russian business,” the group said in a statement to shareholders on Friday. Prosus holds 100% of Avito’s shares.
“We have started the search for an appropriate buyer for our shares in Avito.”
The move follows Russia’s invasion of Ukraine, which led to severe sanctions being imposed on the country, mainly by Western nations, triggering the exit of many international brands.
In March, Prosus, which is headquartered in the Netherlands, said it would cut ties with Avito and would not seek to benefit economically from its ownership of the business.
Reuters reported at the time that Avito was one of Prosus’s most valuable investments until Russia’s invasion of Ukraine on 24 February, with an estimated valuation of around US$6-billion.