Carsales to acquire remaining 51% of Trader Interactive and launch a ~AU$1.207 billion equity raising
Carsales.com Limited (ASX: CAR) announced that it had exercised its call option to buy the remaining 51% stake in Trader Interactive for US$809 million, or approximately AU$1,172 million. This transaction will value Trader Interactive on a 100% EV basis at US$1,897 million, or approx. AU$2,749 million equivalent, which represents a Q4FY22 EV/Adjusted EBITDA acquisition multiple of 21.3x.
The acquisition will be funded by an AU$1,207 million fully underwritten entitlement offer, by which institutional and retail shareholders will be eligible to subscribe for 1 new carsales share for every 4.16 shares held on the record date. Under the Entitlement Offer, the company will issue 68 million new ordinary shares. Simultaneously, the company will also be planning to increase its debt facilities from AU$900 million to AU$1,400 million to replace the existing AU$562 million debt facility at Trader Interactive.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au
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Carsales to acquire remaining 51% of Trader Interactive and launch a ~AU$1.207 billion equity raising
Carsales.com Limited (ASX: CAR) announced that it had exercised its call option to buy the remaining 51% stake in Trader Interactive for US$809 million, or approximately AU$1,172 million. This transaction will value Trader Interactive on a 100% EV basis at US$1,897 million, or approx. AU$2,749 million equivalent, which represents a Q4FY22 EV/Adjusted EBITDA acquisition multiple of 21.3x.
The acquisition will be funded by an AU$1,207 million fully underwritten entitlement offer, by which institutional and retail shareholders will be eligible to subscribe for 1 new carsales share for every 4.16 shares held on the record date. Under the Entitlement Offer, the company will issue 68 million new ordinary shares. Simultaneously, the company will also be planning to increase its debt facilities from AU$900 million to AU$1,400 million to replace the existing AU$562 million debt facility at Trader Interactive.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au