AMSTERDAM (Reuters) -Dutch expertise investor Prosus NV stated on Friday it might cut ties with its Russian on-line market Avito, and wouldn’t search to profit economically from its possession of the business.
Avito was certainly one of Prosus’s most respected investments till Russia’s invasion of Ukraine on Feb. 24, with an estimated valuation of round $6 billion.
Prosus stated in an announcement it would “stop all involvement in its Russian operations”, with Avito persevering with to function as an impartial entity run by its personal board and an area administration group.
“Prosus may have no day-to-day involvement within the operations of the business and can neither make investments additional nor search to profit economically from the curiosity in Avito in these circumstances.”
While Prosus has stated it was “appalled” by the invasion, which Moscow says is a “particular army operation”, it initially determined to proceed working Avito, noting that it has 4,000 workers.
That resolution was criticised after it emerged that Avito had carried commercials for Russian army jobs.
Avito stated in a separate assertion the authorized process for separating from its former dad or mum would take a number of months.
It stated it didn’t want exterior financing and would reinvest its personal funds in growing all areas of its business.
(Reporting by Toby Sterling; Editing by Jan Harvey and Barbara Lewis)
