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British firm signals $2.54b takeover of Trade Me

BusinessDesk report by Jenny Ruth
Trade Me Group says British private equity firm Apax Partners has approached it with a non-binding indicative offer to take it over for $6.40 per share. That’s a 25.5 percent premium to Tuesday’s close at $5.10 and values Trade Me at $2.54 billion. The shares are now trading at $6.09, up 99 cents, or 19.4 percent.

“This indicative proposal is subject to a number of conditions, including the completion of due diligence,” the online marketplace says in a statement.

“The board of Trade Me, together with its advisers, has reviewed the indicative proposal and has decided to engage with Apax,” it says.

Goldman Sachs is advising the company.

“Trade Me has provided Apax with due diligence access on an exclusive basis until Dec. 12 to facilitate a binding offer. This exclusive access is subject to a ‘fiduciary carve-out’ that permits Trade Me to engage with third parties, should it receive any unsolicited proposals.”

The directors say there is no certainty the indicative proposal will result in an offer or any other transaction for Trade Me. Shareholders need take no action in the meantime “and they should not do so without assessing all available information and seeking their own professional advice.”

Other Apax investments include Israel-based Global-e Online, which provides cross-border e-commerce solutions, Genius Sports, a British-based sports data company, SoYoung, the largest online marketplace for aesthetic medical treatments in China, MatchesFashion.com, a British-based predominantly online global luxury goods retailer, and Moda Operandi, a British-based online luxury fashion retailer.

Trade Me was founded by Wellingtonian Sam Morgan.

1 comment:

  1. Sekhmet Bast Ra, 22. November 2018, 2:53

    Interesting to see Apax Partners considering taking over TradeMe. We wish them well and trust a takeover would see the end of TradeMe’s despicable practice of allowing traders to trade in Cat skins which so far TradeMe have steadfastly refused to address despite an online petition with thousands of signatures against this policy.

     

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