OSLO (Reuters) - Norwegian telecoms group Telenor (TEL.OL) entered the online classifieds market on Monday, taking a stake in a Southeast Asian venture and establishing a South American business, it said in a statement.
Telenor will take a 33.3 percent stake in Southeast Asia focused 701 Search, an existing venture between Singapore Press Holdings (SPRM.SI) and Norwegian publishing house Schibsted SBST.OL, and agreed to establish a 50/50 joint venture with Schibsted to create SnT Classifieds with a focus on South America.
“Telenor pays around 145 million euros in cash for its 50 percent share in SnT Classifieds and 33.3 percent stake in 701,” it said. “The parties have committed pro rata funding of the joint ventures until estimated cash flow breakeven.”
As part of the deal, Schibsted will contribute its existing South American assets, including Yapo in Chile and Bomnegocio in Brazil. Telenor will meanwhile contributes its Bangladeshi asset Cellbazaar to the Southeast Asian venture.
Reporting by Balazs Koranyi; Editing by Leslie Gevirtz