OLX Group has bought over 39% stakes in Emerging Markets Property Group (US$150M) for US$150M. At the end of the merger, OLX has now become the single largest shareholder of EMPG, valued at US$1B.
The deal involves merging OLX Group’s classified businesses with that of EMPG in the MENA region. The US$150M investment will be used by EMPG to develop a range of services, create a seamless user experience, enhance data transparency, and deepen market entrance in new markets.
Prosus-owned OLX provides e-commerce services while EMPG, on the other hand, operates properties in Egypt, Pakistan, Lebanon, and the UAE. According to Martin Scheepbouwer, CEO of OLX Group, it will leverage its platform to explore how to scale EMPG’s services. EMPG will operate OLX’s existing platforms in Egypt and Lebanon, and both platforms belonging to OLX and EMPG in Pakistan and the UAE.
The total value of the properties in these markets is estimated at US$90M. This deal will leverage EMPG the opportunity to enhance its real estate operations in the MENA region. Beyond these markets, it will also operate the platforms in Pakistan, Saudi Arabia, Bahrain, Kuwait, Qatar, and Oman.
Source: TechGist Africa