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CarTrade Tech to acquire Sobek from OLX India BV for ₹537.43 crore
- It will acquire Sobek at a cost of ₹537.43 crore to be paid on the completion date of the acquisition, according to a regulatory filing by CarTrade Tech to the stock exchanges.
CarTrade Tech announced on July 10 that it has entered into a share purchase agreement with Sobek Auto India Private Limited and its holding company OLX India BV for the acquisition of a 100 per cent stake in Sobek from OLX India BV. It will acquire Sobek at a cost of ₹537.43 crore to be paid on the completion date of the acquisition, according to a regulatory filing by CarTrade Tech to the stock exchanges.
The deal is subject to the completion of certain conditions and on the terms and conditions agreed between the parties in the share purchase agreement, CarTrade Tech said in an exchange filing. This may take up to 21 to 30 days or as may be decided between the parties.
The company informed the BSE and NSE that Sobek Auto India Private Limited has an authorised share capital of ₹77,000,000, paid-up capital of ₹38,407,530, and reported a turnover of ₹1,11,040 lakhs in FY2021-22. The acquisition does not fall under related-party transactions and declared that none of the group companies have any interest in the above entities, according to the statement.
Sobek is engaged in the business of running an automotive digital platform and a classifieds internet business, had recently acquired the classifieds internet business from OLX India Private Limited under a business transfer agreement. In fiscal 2021-22, Sobek's turnover stood at ₹1,11,040 lakhs.
As part of the acquisition, Sobek has now entered into an intellectual property licence agreement and a transitional support agreement for the use of certain brands and technology.
CarTrade Tech added that the acquisition is in furtherance of the strategic objectives of the company to undertake investments that provide synergistic benefits to its existing businesses. On July 10, shares of CarTrade Tech settled 1.73 per cent lower at ₹486.85 apiece on the BSE.
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First Published:10 Jul 2023, 10:12 PM IST
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