Permira, Blackstone To Launch Tender Offer For Adevinta; EBay Supports Offer

(RTTNews) - Private equity firms Permira and Blackstone said that they will launch a takeover tender for Adevinta, an Oslo-listed classifieds business backed by eBay that would be valued at about 141 billion Norwegian Kroner or $13.2 billion.

The price per Adevinta share offered to the Adevinta shareholders is 115 Kroner. The offer price is the offeror's best and final price, representing a premium of 54% to the volume weighted average price of 74.58 Kroner over the 3 months up to and including 19 September 2023.

Meanwhile, eBay Inc. (EBAY) announced its support for the voluntary tender offer led by Permira and Blackstone to acquire all the publicly traded shares of Adevinta.

The offer values eBay's entire stake in Adevinta at about $4.3 billion, representing a premium of roughly $1.5 billion over the $2.8 billion value prior to speculation in September 2023 regarding the transaction.

eBay would sell 50% of its stake in Adevinta in the transaction, receiving approximately $2.2 billion in cash upon closing. eBay has agreed to support the transaction by exchanging its remaining shares for an equity stake of approximately 20% in the newly privatized company.

eBay plans to use the cash proceeds from the prospective transaction for general corporate purposes. The company remains committed to returning approximately 125% of cumulative free cash flow to shareholders through repurchases and dividends over the three-year period from 2022 to 2024.

Additionally, for six months following the closing, Permira, Blackstone and their co-investors have a right to purchase, from eBay, an additional number of shares in privatized Adevinta, which would reduce eBay's ownership position in Adevinta to about 9.99%.

If the right is exercised by Permira, Blackstone and their co-investors, the purchase price for those additional shares would be the same price paid to eBay for its Adevinta shares at closing and would represent proceeds in excess of $1 billion.

The offer is expected to be completed in the second quarter of 2024.