South African multinational media company Naspers is set to purchase a $40 million stake in one of the Middle East’s biggest e-commerce websites Souq.com, according to Arabian Business.
Souq.com is currently owned by the Al Jabbar Internet Group, which is based in the United Arab Emirates (UAE).
The Arabian Business report says that according to sources familiar with the matter, the deal is set to be announced in the coming two weeks and will be the largest investment made in an e-commerce business in the Middle East since 2009.
In 2009, Arabic-language internet venture Maktoob.com, the largest online portal in the Arab world, was sold for $165m to search engine Yahoo!
Al Jabbar chairman and chief executive Samih Toukan said in reports earlier this month that his group has been in talks with investors seeking to take a stake in his company. Al Jabbar has eight ventures including Souq.com.
The ecommerce market in the Middle East is valued at $11 billion per year, according to the Arab Advisors Group (AAG).
However, Naspers has refused to confirm nor deny the Arabian Business report.
Naspers investment relations manager, Meloy Horn, has told ITWeb Africa that it's her company’s policy “not to comment on press speculation”.
Naspers, which is listed on the Johannesburg Stock Exchange (JSE), has branched out internationally in the last decade, buying up stakes in tech and media firms across the globe.
The South African multinational has a 34% stake in China’s Tencent holdings, which recorded a profit at the end of 2011 of $1.6-billion.
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