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Naspers now says it acquired 100% in Redbus for $101M

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South African media conglomerate Naspers, which acquired redBus through its wholly owned subsidiary MIH India Global Internet Ltd, now says that it had acquired 100% stake in the online bus ticketing major for 1 billion rand (around $101 million at the time), instead of the 80% it had mentioned earlier, for the same price.

Comparing the statements

June 2014: “In June 2013 the group’s subsidiary MIH India Global Internet Limited (MIH India) acquired a 100% interest in redBus, an Indian online ticketing platform. The fair value of the total purchase consideration was R1bn in cash. The purchase price allocation: property, plant and equipment R4m; intangible assets R354m; cash R29m and restricted cash R96m; trade and other receivables R27m; trade and other payables R41m; deferred tax liability R114m and the balance to goodwill.” (read)

September 2013: “In June 2013 the group acquired an effective 80% interest in redBus, an Indian online ticketing platform. The fair value of the total purchase consideration was R1bn in cash. The purchase price allocation: property, plant and equipment R4m; intangible assets R402m; cash R29m; trade and other receivables R27m; trade and other payables R41m; deferred tax liability R120m and the balance to goodwill. ” (read)

The difference: The June 2014 includes R96m in restricted cash while the September 2013 statement makes no mention of it; it has R48M lower in intangible assets, R6M lower in deferred tax liability, and as per our calculations, has R42M lower goodwill.

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We’re awaiting a response from Naspers, but, given that the company still hasn’t responded to our Jan 2014 query on whether it has exited ACL Mobile and Nimbuzz (which no longer feature in its financial statements), we’re not sure if one will be forthcoming.

Recent developments at Redbus-Ibibo

IbiboGroup (MIH India) acquired bus tracking company YourBus, which provides in-bus GPS tracking solutions. Apart from Redbus and Yourbus, its travel portfolio includes GoIbibo and Travel Boutique Online.

redBus founders Phanindra Sama and Charan Kumar Raju have exited the company. Following this, Ibibo group has appointed Prakash Sangam as the CEO of redBus. This followed soon after redBus CMO Lakshmikant Gupta quit to join Girnarsoft, which owns portals like CarDekho, BikeDekho and PriceDekho.

redBus had also 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 readPhanindra 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.

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Additional reading:

– redBus.in Witnessing Senior Management Exodus Over ESOPs: Report
– 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
Why Kanwal Rekhi Didn’t Want To Exit RedBus Despite 10X Returns – StartupCentral

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