Navi Mumbai-based CarTrade is all set to acquire OLX India’s auto sales business in a deal worth Rs 537 crore.
“The acquisition is in furtherance of the strategic objectives of the company to undertake investments, which provide synergistic benefits to the existing businesses of CarTrade,” the firm said.
According to an exchange filing, CarTrade will acquire a 100 per cent stake in Sobek Auto India, which houses the automotive business for OLX India, in an all-cash deal. The company also informed the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) that Sobek has an authorised share capital of Rs 77,000,000 and paid up capital of Rs 38,407,530.
The takeover is expected to be completed in 21-30 days.
“As part of the acquisition of Sobek, Sobek has entered into an intellectual property licence agreement and a transitional support agreement for the use of certain brands and technology,” the filing stated.
In the last financial year (FY22), Sobek Auto India managed to bag a turnover of Rs 1,100 crore. The company registered a significant growth compared to Rs 592.3 crore in FY21.
Earlier this year, Netherlands-based venture capital (VC) firm Prosus Investment-backed OLX exit its automotive business. The firm was looking for potential buyout options since the exit took place.
