Summary by Moomoo AI
eBay Inc. has finalized the sale of 404,231,183 Adevinta ASA shares on May 29, 2024. The transaction involved selling 227,115,592 shares to Aurelia BidCo 1 Norway AS for $2.4 billion in cash and exchanging 177,115,591 shares for an equal number of shares in Aurelia Netherlands TopCo B.V.The deal significantly impacts eBay's financial position, with pro forma adjustments showing an increase in cash and cash equivalents from $2.13 billion to $4.56 billion. The company's equity investment in Adevinta, previously valued at $4.24 billion, has been eliminated, while long-term investments increased by $1.86 billion, reflecting the fair value of TopCo shares received.eBay also granted a six-month option to the Equity Investor to purchase TopCo shares, potentially reducing eBay's ownership to 8.3%. The transaction is expected to result in a pre-tax gain, with adjustments to deferred tax liabilities and income tax provisions. The pro forma financial information indicates potential changes in eBay's income from continuing operations and earnings per share for both Q1 2024 and FY 2023.
