File Photo: IOL

JOHANNESBURG – Naspers yesterday moved its diversification strategy further, announcing that its e-commerce and classified unit OLX Group had made a R1.4 billion acquisition of specialised car buying service, We Buy Cars.

The group said the investment formed part of its plans to boost growth in classifieds, online food delivery and fintech businesses globally.

Chief executive Bob van Dijk said the investment in We Buy Cars would strengthen group’s ecommerce businesses.

“We invested R7bn in mergers and acquisitions in South Africa in the last year, including R3bn in e-commerce” he said. The group paid R2.7bn for a stake in Takealot Online.

The transaction comes just hours after the group announced that it was planning to spin off its video entertainment business and list it as a separate entity as part of a mission to evolve into a global consumer internet company.

The business includes cash cow-turned struggling pay-TV unit Multichoice. 

Naspers said the unbundling was in line with its strategy to transform into a global consumer internet company and would see it allocating an additional 5 percent stake in Multichoice to Phuthuma Nathi for free.

The group said Phuthuma Nathi shareholders would be able to exchange 25 percent of their original shareholding for MultiChoice Group shares that will be freely tradeable after the listing.

Competitor Netflix entered South Africa in 2016 and has taken market share from Multichoice, with the evolution of online streaming placing further pressure on Multichoice.

– BUSINESS REPORT