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Dutch Company Prosus Sells Avito Store in Russia

Prosus sells the Russian online store Avito, which was previously valued at $6 billion

The Dutch technical investment company Prosus has stated that it is looking for a buyer for its Russian online store Avito, noting that Avito was one of the company’s most expensive investments with a value of up to $6 billion before Russia started the war on Ukraine on February 24 in what the Moscow government described as a “special military operation.” .

Separately, Moscow-based Avito stated that it will continue to operate as an independent project under Russian management, noting that this will not affect Avito’s development plans and opportunities in Russia.

In March, Prosus stated that it would cut off its relationship with Avito and would not seek to benefit from its ownership in an economic way, but after imposing sanctions on Russia following its invasion of Ukraine, Prosus initially decided to continue operating Avito due to the fact that it was responsible for 4,000 employees in it, but that decision was criticized after that It turns out that Avito has been advertising campaigns for jobs in the Russian army. Read more [Prosus Writes Off its Stake in Russia’s VK Group].

Prose has stated that it will separate Avito from its larger e-commerce business venture called the OLX Group, but it did not say what will happen after the split. Read more [Zurich Insurance Company Graduated from Russia].

Shares in Prosus, which are managed by Napiers in South Africa, have lost more than 40% of their value over the past year, mainly due to the poor valuation of its largest asset, which is a 28.9% stake in Chinese media giant Tencent. After the news of the intent to sell, Prosus shares traded 2.4% higher in Amsterdam. Read more [Covid and Regulatory Scrutiny are Destroying Tencent].

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