Carsales buys major stake in Chileautos

Carsales has snapped up a 83 per cent stake in Chile's automotive classifieds website group Chileautos for $A19.89 million.

Online car seller Carsales has bought an 83 per cent stake in Chile automotive classifieds website Chileautos for $US15 million ($A19.89 million).

The deal was funded from existing cash reserves and syndicated debt facilities.

The company also retains an option to purchase the remaining 17 per cent stake in Chileautos at any time during the next four years.

Carsales said it expects deal to make a positive contribution to earnings before interest, tax, depreciation and amortisation, albeit not material. It also expects it to be earnings-per-share accretive to carsales shareholders after the first year.