The colourful life of Tradus, the internet auction site known formerly as QXL Ricardo, may be at an end after it recommended a £946m ($1.9bn) offer from Naspers, a South African media group. The bid will let Naspers expand into eastern Europe, where Tradus has built a strong presence. The deal is worth £18 per share in cash and represents a 19.2% premium to the share price the day before Tradus confirmed a bid approach in November. Tradus shares closed up 195p at £18.15 on hopes of a possible bidding war. However, two major shareholders with a combined holding of 17.9% have backed the deal. Novator Equities, owned by Icelandic billionaire Thor Bjorgolfsson, and Wouwer Investeringen, which holds shares on behalf of the group’s Polish management, have signed agreements that will remain binding unless there is a competing bid at more than £21.75 per share. Bjorgolfsson is set to make an £85.6m profit from his initial £90m stake. Lex says while Tradus “can breathe a sigh of relief”, the fall in Naspers shares suggest a fear that “the days of overpaying for internet companies with uncertain future revenues are not necessarily over”.

This entry was posted by Gwen Robinson on Wednesday, December 19th, 2007 at 5:26 and is filed under Capital markets, M&A, People. Tagged with Naspers, Novator, Tradus, Wouwer. Edit this entry.