Green light for £1bn takeover deal

A near £1bn (€1.3bn) takeover for the online auctioneer Tradus by South African media firm Naspers cleared a regulation hurdle today.

The deal was given the green light by competition chiefs in Poland, one of Tradus’ main operating bases, the firm said.

Formerly known as QXL Ricardo, it conducts internet auctions across 11 European countries and agreed an £18-a-share offer from Naspers in December.

In a statement today, Tradus said the President of the Office for the Protection of Competition and Consumers in Poland had unconditionally cleared the proposed acquisition, and it was likely to take effect from next month.

The deal is the latest step in the turbulent history of the firm, which offers online auctions trading 24 hours a day allowing buyers to bid on goods and services ranging from computer software to collectables and sports equipment.

Tradus was founded by former Financial Times journalist Tim Jackson in 1997, became a dot.com darling when it listed on the stock market in 1999.

It has since gradually mounted a recovery and Nasper’s cash deal represented a 19% premium on its price of 1510p-a-share when the firm first announced it was in takeover discussions last year. Tradus now employs about 400 workers.

Naspers, which owns the Daily Sun newspaper and pay TV firm Multichoice and already has internet operations in Africa, China and Russia, said the buyout would help it expand in central and eastern Europe.

The takeover came amid a wider revival of interest in internet companies with deals including Microsoft acquiring a stake in US-based social networking website Facebook and the flotation of price comparison website Moneysupermarket.com.