eBay have reached an agreement with Permira to sell approximately 125 million shares of its Adevinta stake for an estimated total consideration of $2.25 billion.
This news comes after eBay completed the transfer of its Classifieds business to Adevinta in exchange for $2.5 billion in cash and a 44% equity stake in Adevinta. The transaction expected to take place in Q4 of 2021 will reduce eBay’s Adevinta stake from 44% to 34%. The full announcement from eBay can be read below.
“eBay Inc. (Nasdaq: EBAY), a global commerce leader that connects millions of buyers and sellers around the world, today announced that it has reached an agreement with Permira to sell approximately 125 million shares of its stake in Adevinta for an estimated total consideration of $2.25 billion.1 The price represents an approximate 7% discount to the 10-day volume weighted average price (VWAP) of Adevinta shares as of July 12, and a 5% discount to the 30-day VWAP as of July 12.
The transaction is expected to close in Q4 2021, once regulatory approvals are secured, and will reduce eBay’s ownership stake in Adevinta from 44% to 34%. In addition, eBay has granted Permira a 30-day option to purchase approximately 10 million additional shares at the same price representing an additional $180 million in consideration.2 If Permira exercises the option, eBay’s ownership in Adevinta will reduce to 33%.
Under its recent agreement with Austrian regulators, eBay committed to reduce its ownership in Adevinta to 33% to secure approval for the eBay Classifieds Group and Adevinta transaction. The transaction announced today with Permira provides a clear path to satisfying this commitment, while delivering value to eBay shareholders and introducing an experienced, world-class growth investor to Adevinta’s shareholder base.”