eBay announced that it has reached an agreement with global investment firm Permira to sell approximately 125 million shares of its stake in Adevinta for an estimated total consideration of $2.25 billion.
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%.
eBay Grants Permira Option to Buy More Shares
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 consideration2. If Permira exercises the option, eBay’s ownership in Adevinta will reduce to 33%.
Under its recent agreement with Austrian regulators, eBay committed to reducing its ownership in Adevinta to 33% to secure approval for the eBay Classifieds Group and Adevinta transaction.
The transaction announced 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.
Subscribe to Our Newsletter Today
Stay in touch with the latest business insights for your online business
We do not share your information and you can unsubscribe anytime
Connect With Us And Other Small Business Owners
Please head over to our Facebook Group for Small Business Sellers and interact with other small business owners.