CarTrade Tech acquires OLX Autos' India biz for Rs 537 crore

NEW DELHI:

CarTrade Tech on Monday said it is acquiring Sobek Auto India Private Ltd, the company that owns OLX India's auto sales division, for Rs 537 crore.

In a filing with the Bombay Stock Exchange (BSE), CarTrade Tech said it will buy 100 per cent of Sobek's shares and is making the purchase "to provide synergistic benefits to the existing businesses of CarTrade Tech".

“This is to inform you that on July 10, 2023, CarTrade Tech has entered into a share purchase agreement with Sobek Auto India Private Limited, and its holding company OLX India BV, for acquisition of 100 per cent stake of Sobek from OLX India BV,” the company said in its filing.

The transaction will be an all-cash deal and the acquisition is likely to be completed within 30 days.

Sobek is being acquired at a cost of Rs 537.43 crore to be paid on the completion date of the acquisition.

CarTrade Tech said the acquisition is in furtherance of the strategic objectives of the company to undertake investments that provide synergistic benefits to its existing businesses.

According to the exchange filing, OLX India also sold its classifieds internet business to Sobek on June 30.

Last month, OLX Group, along with Prosus, the classifieds business arm of the global investment group, announced a reduction of approximately 800 jobs worldwide. This decision comes as OLX Group begins to wind down its automotive business arm, Olx Autos, in various regions after an extensive search for potential buyers and investors.


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