May 1, 2019 / 11:53 AM / in 4 months

OYO to buy European vacation rental group for $415 million - source

The logo of OYO, India's largest and fastest-growing hotel chain, installed on a hotel building is pictured in an alley in New Delhi, India, April 3, 2019. REUTERS/Adnan Abidi

BENGALURU (Reuters) - Indian hotel startup OYO will buy European vacation rental group @Leisure for about 370 million euros ($415.29 million) from German media company Axel Springer and other shareholders, said a source familiar with the matter.

Springer, publisher of the Bild tabloid, said here on Wednesday it would sell its majority stake in @Leisure for 180 million euros, including the repayment of a shareholder loan of around 60 million euros, to focus more on StepStone Group and AVIV Group in the classifieds media business.

The transaction is expected to close in June, Springer said in a statement.

The acquisition will help SoftBank Group Corp-backed OYO expand its Homes business, which will now have more than 100 million vacation rentals and urban homes.

@Leisure manages holiday homes, holiday parks and holiday apartments across Europe and has a total inventory of more than 300,000 rooms.

Europe will be OYO’s largest market accounting for up to 40 percent of total supply.

OYO, which raised $1 billion last year, now has presence in more than 800 cities across 24 countries including the United States, UK, India, China and Japan.

Sources told Reuters last month that home-renting company Airbnb would invest between $100 million and $200 million in OYO.

Reporting By Arnab Paul in Bengaluru and Aditi Shah in New Delhi; Editing by Subhranshu Sahu

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