Carsales.com has agreed to pay $126 million for a major stake in the online operations of South Korea's leading car seller, further expanding its international reach.
The company plans to take a 49.9 per cent interest in SK Encar's online operations, which includes the country's top car sales website.
"More than 1.6 million new vehicles are expected to be sold in South Korea in 2014 - nearly 60 per cent more than in Australia during the same period," Carsales managing director Greg Roebuck said.
"In addition, around 3.3 million used vehicles will find new homes."
As well as its Australian business, Carsales also has interests in Brazil, Malaysia, Indonesia, Thailand, China and New Zealand.
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Its half year profit recently rose by 17 per cent to $44 million, and it has forecast a 15 per cent rise in its full year profit.
The South Korean purchase requires approval from SK Encar's shareholders and Korean regulators, and Carsales expects the deal to be completed by June 30.
The company's shares were up 59.5 cents, or 5.7 per cent, at $11.105 at 1422 AEDT.
