eBay to Purchase Additional Shares of Internet Auction Co.
eBay today announced that it has agreed to purchase additional publicly-held common shares of Internet Auction Co. (IAC). from several institutional shareholders, including funds managed by Tiger Technology, Lone Pine Capital LLC, Viking Global Investors and others, collectively representing more than 23% of IAC’s total outstanding shares.
eBay has agreed to purchase 2,994,596 shares from these shareholders at KRW125,000 per share in on-the-market block trades for a total purchase amount of more than KRW374 billion. The shares will be purchased only after the market price of IAC’s shares comes within range of the KRW125,000 purchase price as required by Korean securities regulations. This purchase, which will be a cash transaction, will increase eBay’s ownership of IAC from approximately 62% to nearly 86%. Based on an August 31, 2004 exchange rate of KRW1,152 to US$1.00, the purchase amount will approximate US$325 million.
eBay may make additional purchases of IAC shares from other institutional shareholders at the same price in the coming days. In addition, eBay intends to pursue a tender offer in Korea for all remaining shares during the coming weeks at the same price of KRW125,000 per share.
eBay does not expect the purchase of these shares to affect its financial guidance for the third quarter of 2004 or the full year 2004 as issued in connection with its second quarter earnings release on July 21, 2004.
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