iCar Asia Limited (ASX:ICQ), owner of ASEAN's number 1 network of automotive websites, is to acquire Thailand’s largest automotive classifieds site One2car.com for A$16.7 million.
The acquisition will be funded by a $21 million placement of new shares to professional and sophisticated investors at an issue price of $1.10.
This placement was successfully completed on 12 November 2014, and iCar will also offer a share purchase plan to raise a further $4 million.
One2car.com has been established for over 12 years and consistently attracts an audience of more than 1.2 million unique visitors every month.
It boasts 1,800 car dealers in the greater Bangkok area paying a monthly subscription to list their cars on the site, and an estimated that in excess of 80% of all car buyer leads to car dealers in greater Bangkok are generated by One2car.com.
iCar will combine One2car.com with its existing site in Thailand, Thaicar.com, resulting in a strong leadership position in the Thai market.
The consideration for the purchase is A$16.7 million, comprised of A$13.4 million cash and A$3.3 million worth of ICQ shares to be issued to the vendors.
The final issue price of these shares will be determined at completion of the acquisition. A further A$900,000 will be allocated to a bonus pool for One2car.com staff.
The acquisition is subject to a number of conditions precedent and is expected to complete in mid-December 2014.
ICQ is capitalised at $230 million and is currently trading at $1.15.
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