Combined platform aimed at users in Brazil, Indonesia, Thailand and Bangladesh
Telenor, Schibsted and SPH first teamed up in September, 2013, to create two JVs
SOUTH Africa’s Naspers Ltd, Norway’s Schibsted Media Group and Telenor Group, and Singapore Press Holdings have agreed to establish joint ventures to develop their online classifieds platforms in four key markets: Brazil, Indonesia, Thailand and Bangladesh.
Combining the platforms will make it faster and easier than ever for people to trade and turn their items into cash, Telenor said in a statement.
They will be able to choose from a wider selection of items and be more successful in selling their own items to a larger audience of buyers.
By coming together, the businesses will also be able to share cost, expertise and people to more effectively build awareness of the benefits of a vibrant online classifieds offering to consumers, the company said.
The initiative follows on other joint ventures the companies have been involved in. Schibsted and Telenor have an equal shareholding joint venture called SnT Classifieds; while Schibsted, Telenor and SPH have an equal partnership joint venture in 701Search.
The ownership structure in the joint ventures will be as follows:
Brazil: 50.0% Naspers and 50.0% SnT
Indonesia: 64.0% Naspers and 36.0% 701Search
Thailand: 55.9% 701Search and 44.1% Naspers
Bangladesh: 50.3% SNT and 49.7% Naspers
As part of the agreement, 701Search will transfer its online classifieds business in the Philippines to Naspers, which will manage the operation. This will allow 701Search to focus its efforts in Thailand, Telenor said.
The parties will continue to develop other markets separately, it added.
“Building on the already established and successful cooperation between us, SPH and Schibsted, our engagement in online classifieds has moved from a somewhat unexplored field to a strategic and exciting area of opportunity,” said Henrik Clausen (pic), executive vice president and head of Telenor Group Strategy & Digital.
“I’m confident that taking this to the next phase will result in a sustainable model with great customer services, good growth and potential synergies,” he added.
Telenor, Schibsted and SPH first teamed up in September, 2013, to create two joint ventures targeted at markets in Asia and South America, SnT Classifieds and 701Search.
SnT was a new venture, while 701 was an existing joint venture between Schibsted and SPH with online classifieds operations in South-East Asia. Today, it operates the online classified companies Mudah.my (Malaysia), Berniaga.com (Indonesia), Ayosdito.ph (the Philippines).
“We are pleased to partner with Naspers following our strategic investments with Schibsted and Telenor,” said SPH chief executive officer Alan Chan, speaking about the venture.
“It will greatly enhance our regional presence, ensure cost savings, and promote the exchange of expertise. We are confident that this move will help us better serve all consumers in the region,” he added.
The transaction is subject to EU approval and is expected to close in early 2015.
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