Australia's Carsales.com to raise $329 mln for bigger stake in Brazil's Webmotors (updated)

Banco Santander Brasil SA

07/03/2023 22:37

(Adds details on stake increase and capital raising)
       March 8 (Reuters) - Australian online auto classifieds
firm Carsales.com Ltd  CAR.AX  said on Wednesday it would launch
an A$500 million ($329.40 million) equity raising to fund a deal
to acquire an additional 40% stake in Brazil-based automotive
digital marketplace Webmotors SA.
    The acquisition price for the stake increase will be about
A$353 million and will make Carsales a 70% owner of Webmotors,
it said.
    "The acquisition is in line with carsales' strategy of
acquiring minority stakes in attractive international markets
and moving to control positions over time," the company said.
        Carsales.com said it will raise capital via a fully
underwritten 1 for 14.01 entitlement offer at A$19.95 per share,
representing an 11.9% discount to stock's last closing price.
  
        Carsales will buy the additional stake from Brazilian
lender Santander Brasil SA  SANB3.SA , which will continue to
own the remaining 30% in Webmotors.
        The deal, which is expected to close in the fourth
quarter of fiscal 2023, is anticipated to be earnings per share
neutral in the first full year after completion and add
thereafter, the company said. 
  
    
 ($1 = 1.5179 Australian dollars)

 (Reporting by Himanshi Akhand in Bengaluru; Editing by Maju
Samuel)
 ((Himanshi.Akhand@thomsonreuters.com;))