Prosus to cut ties with Russian Avito classifieds business

Prosus’ symbol is pictured on a smartphone in this illustration taken, December 4, 2021. REUTERS/Dado Ruvic/Illustration

AMSTERDAM, March 25 (Reuters) – Dutch engineering investor Prosus NV (PRX.AS) explained on Friday it would slice ties with its Russian online marketplace Avito, and would not find to benefit economically from its ownership of the business.

Avito was just one of Prosus’s most beneficial investments until Russia’s invasion of Ukraine on Feb. 24, with an believed valuation of about $6 billion.

Prosus claimed in a assertion it will “cease all involvement in its Russian functions”, with Avito continuing to work as an independent entity operate by its possess board and a nearby administration workforce.

“Prosus will have no day-to-day involvement in the functions of the business and will neither commit even further nor seek out to reward economically from the fascination in Avito in these situation.”

Although Prosus has claimed it was “appalled” by the invasion, which Moscow suggests is a “specific navy procedure”, it to begin with determined to proceed functioning Avito, noting that it has 4,000 workforce.

That choice was criticised soon after it emerged that Avito experienced carried commercials for Russian military employment. read far more

Avito claimed in a separate statement the legal method for separating from its previous mother or father would just take quite a few months.

It reported it did not need exterior financing and would reinvest its very own money in acquiring all places of its business.

Reporting by Toby Sterling Editing by Jan Harvey and Barbara Lewis

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