of Australia Is Set to Raise $329 Million to Increase Their Stake in Brazil’s Webmotors Platform

Must Read Ltd (CAR.AX), Australia’s leading online auto classifieds company, has announced that they want to raise A$500 million ($329.40 million) to purchase an additional 40 per cent stake in Brazil’s premier automotive digital marketplace – Webmotors SA.

By purchasing Webmotors from Brazilian lender Santander Brasil SA (SANB3.SA) with an approximate price tag of A$353 million, Carsales will attain a 70 per cent ownership stake in the company, announced today.

Santander will maintain its ownership stake in Webmotors, currently at 30%.

This purchase is in keeping with Carsales’ plans to take ownership of minority stakes in notable international markets and eventually gain a controlling interest.” The company said. announced its intention to bolster its capital utilising a fully underwritten entitlement offer enabling existing shareholders the ability to purchase stock for $A19.95 each share.

Investors can now avail themselves of the exciting opportunity to purchase one CAR.AX share for every 14.01 shares they possess in their portfolio.

CAR.AX is acquiring an extra portion from Brazilian lender Santander Brasil SA (SANB3.SA), and this financial institution will hold onto the remaining 30% of Webmotors’ stock.

By offering a discount of 11.9 per cent to its previous closing price, the company has presented an attractive opportunity for potential investors. The organisation will issue 25.1 million brand-new stocks, corresponding to approximately 7 per cent of its existing issued capitalisation.

This year, Carsales’ deal has joined the two other hefty investments in Australia’s capital markets; Star Entertainment Group (SGR.AX) raised A$800 million in February, and Flight Centre (FLT.AX) successfully obtained A$180 million at the end of January.

This agreement, expected to be finalised in the upcoming quarter, will not affect earnings per share for the first year after completion; however, it is predicted to improve income afterward. The company has stated that this is likely.

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