Frontier gives Congo property portal the flick due to unexpected “underperformance”
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Who knew the Democratic Republic of Congo might not be the best performing country for online property sites?
Frontier Digital Ventures (ASX:FDV) — which invests in online classifieds businesses in under-developed countries — is selling its stake in IMCongo, a Congo property portal where house-hunters can buy, sell and rent everything from warehouses (we found one for $US4 a day) to high-end mansions.
For the more budget conscious, there’s a studio to let for $US40 a month.
Frontier says IMCongo lost out in a “portfolio optimisation process”. It was underperforming against benchmarks Frontier sets for its property portal investments in under-developed countries.
Frontier has been contacted for comment.
While IMCongo made just under $11,000 in the first half of this year, that was only 0.1 per cent of revenue from Frontier’s portfolio of 18 companies.
Still, for investors who have found gold, lithium or diamonds in the conflict-ridden Congo, you can buy a fabulous downtown villa for $US2.5 million.
If the capital raise hasn’t come in yet and you’re still waiting on that buyer for your tenement, this $US100,000 house below might better suit your income.
Frontier made an investment in IMCongo in 2016 of $US175,000 ($223,000) in cash and 332,500 shares for 65.9 per cent of the company.
IMCongo sold its Frontier shares for $242,725 and will use that to pay for Frontier’s stake.
The company invests in emerging market online businesses, buying one advertising Bolivian property earlier in September, and still has a stake in Congolese car site Carwangu.
Frontier reported a $6 million loss for the half-year on revenue of $4.4 million. The business had $9.2 million in the bank at the end of June.
Frontier’s share price has steadily increased this year from 43c in January to around 75c in September.
Its shares were trading at 76c in Thursday lunchtime trade, giving it a market cap of $167 million.