Prosus terminates its $4.7 billion acquisition of Indian payment platform BillDesk

CTOnews.com, Oct. 3 (Reuters)-Amsterdam-based technology investment firm Prosus NV said on Monday that it had "terminated" its $4.7 billion acquisition of Indian payment platform BillDesk, adding that "the prerequisites have not been met." A few weeks ago, the deal was approved by local regulators.

Prosus announced plans to acquire BillDesk in August 2021, saying it would complement its PayU business and strengthen its influence in India, one of Prosus's biggest markets.

"certain prerequisites have not been met before the long-term stop date on September 30, 2022, and the agreement has been automatically terminated in accordance with its terms, so the proposed transaction will not be implemented," Prosus said in a statement.

The acquisition, announced at the height of last year's bull market cycle, was supposed to be the second-largest M & A deal in the consumer internet sector in South Asia. But in recent quarters, with the turning point in the market, Prosus itself has eroded considerable value.

It is not clear whether Prosus and BillDesk have reached an agreement on termination fees.

PayU and 20-year-old BillDesk handle a large number of payment transactions in India. If combined, they would have a clear lead in the Indian market.

It should be noted that Prosus is also a major shareholder of Tencent, and its "e-commerce portfolio" revenue remains strong.