CarTrade Tech to acquire Sobek Auto India for Rs 537 crore

The online auto classified platform CarTrade Tech announced on Monday that it has signed a contract to buy Sobek Auto India for a price of Rs 537 crore. Sobek is in the business of operating an automotive digital platform and a classifieds internet business. According to the statement, the purchase of Sobek would cost Rs 537.43 crore, which must be paid on the closing day of the transaction.

According to a regulatory filing by CarTrade Tech, the firm has signed into a share purchase agreement to buy the entire outstanding stock of Sobek from OLX India BV, subject to the fulfilment of certain requirements.

Further, this deal is subject to the completion of certain conditions and on the terms and conditions agreed between the parties in the share purchase agreement and this may take up to 21 to 30 days or as may be mutually decided between the parties, the company added in the filing.

According to the terms and conditions outlined in a business transfer agreement, Sobek has bought the classifieds internet company from OLX India on June 30, 2023. As part of the acquisition of Sobek, Sobek has entered into an Intellectual Property License Agreement and a Transitional Support Agreement for the use of certain brands and technology.

According to the company, the acquisition advances its strategic goals of making investments that benefit the CarTrade Tech’s already-existing businesses in a positive way.

According to SEBI regulations, the firm notified the BSE and NSE that Sobek Auto India Private Limited had a paid-up capital of Rs 38,407,530 and an authorised share capital of Rs 77,000,000 as of FY2021-22. It also disclosed a turnover of Rs 1,11,040 lakhs. Also, this acquisition does not fall under related-party transactions and declared that none of the group companies have any interest in the above entities.

Source: Media reports