(Adds CEO quote, details on gain, share movement)
Nov 20 (Reuters) - Carsales.com Ltd (CAR) said it had signed a memorandum of understanding with SK Holdings Co Ltd <034730.KS> to buy the remaining 50.1 percent stake in South Korean joint venture Encar.com for about A$244 million ($184.49 million), before adjusting for working capital.
The deal was expected to be signed next month and completed in January, it added.
Australia-based carsales.com had bought a 49.9 percent stake in Encar.com in April 2014.
The online auto classifieds company's existing stake in the joint venture would be revalued for accounting purposes, creating a one-off non-cash gain of about A$100 million.
"This acquisition is a significant milestone in carsales’ long-term strategy to be the global leader in online auto classifieds," Chief Executive Cameron McIntyre said.
The company anticipated the deal to be neutral to adjusted earnings in fiscal 2018 and accretive in fiscal 2019 and beyond.
Shares of carsales.com fell as much as 1.8 percent in early trade, posting their biggest intra-day drop since September. ($1 = 1.3226 Australian dollars)
-
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Add to My Watchlist
What is My Watchlist?
 (20min delay)
|
|||||
|
Last
$37.00 |
Change
-0.130(0.35%) |
Mkt cap ! $13.98B | |||
| Open | High | Low | Value | Volume |
| $37.04 | $37.13 | $36.28 | $38.79M | 1.053M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 641 | $37.00 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $37.09 | 574 | 1 |
View Market Depth
| Last trade - 16.10pm 08/08/2025 (20 minute delay) ? |
| CAR (ASX) Chart |