South African media conglomerate Naspers group had acquired 80% stake in online bus booking portal redBus.in for a total purchase consideration of 1 billion rand (around $101.1 million in June 2013 exchange rates), the company has revealed in its earnings results for the quarter ended September 30, 2013.
This brings the company’s valuation to around 1.25 billion rand (around $126.4 million), which ties in with earlier reports which had suggested a valuation between $100-$138 million.
Of this, Naspers had allocated 402 million rand for intangible assets, 29 million rand in cash, 4 million rand for property, plant and equipment, 27 million rand for trade and other receivables, 41 million rand for trade and other payables, 120 million rand as deferred tax liability and the remaining amount to goodwill.
In June 2013, Naspers had acquired a majority stake in redBus through its subsidiary MIH India. Ibibo CEO Ashish Kashyap had then said that redBus will be operating as an independent business in its current travel portfolio which includes GoIbibo and Travel Boutique Online and added that Phanindra Sama will continue in his role as the redBus CEO.
However, the company had reportedly witnessed multiple exits at the senior management level few months later, due to issues related to how the employee stock options (ESOPs) were dealt with, wherein only the founding team and select employees (not more than three) apparently benefited majorly from the acquisition while the rest of employees were left out. (Also read: Phanindra Sama on the trickiness of providing ESOPs to employees)
For the year ended March 31, 2012, redBus had reported net revenues of Rs 32.87 crore (Rs 32,87,00,903), up 170.72% from Rs 12.14 crore (Rs 12,14,18,304) in the previous year. It had reported a profit of 0.58 crore (Rs 58,11,982) for the year as opposed to a loss of Rs 3.15 crore (Rs 3,15,97,386) in the previous year.
– Key Events In redBus’s Journey : A Timeline
– Is The Redbus Exit Really Good For The Venture Ecosystem In India? – Anand Lunia
– “Exits Are Rare In India. When One Comes Along, You Take It”: Phanindra Sama – StartupCentral