REA will raise stake from 17.2% to 19.4% via issue of 5M new shares in iProperty. The shares are to be issued as consideration for iProperty’s acquisition of squarefoot.com.hk
REA Group (REA) will increase its stake in Australian Securities Exchange-listed iProperty Group from 17.2 per cent to 19.4 per cent via the issue of five million new shares in iProperty at $3 per share.
The shares are to be issued as consideration for the acquisition by iProperty of REA’s Hong Kong business squarefoot.com.hk. The acquisition remains subject to iProperty shareholder approval and completion is expected to occur by the end of calendar year 2014.
Georg Chmiel, CEO of iProperty Group said, “squarefoot.com.hk is the number 2 property portal for the Hong Kong market. As a result of this acquisition, iProperty now owns both the top portals, providing us with a dominant position in a highly strategic market. iProperty now dominates two key markets in Asia – Malaysia and the Hong Kong / Macau region. As the region’s property portal leader, we are excited about the prospect of working closer with REA going forward.”
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Chmiel added, “The combined operations will be a dominant leader in both the property portal and property exhibitions space in the Hong Kong and Macau region. We will have well over 1,000 unique real estate agencies paying to subscribe to our combined service and will deliver listings and property developer advertising to over 1.1 million unique visitors in Hong Kong every month.”
iProperty already owns and operates Hong Kong’s top property portal, Gohome.com.hk, which recently turned profitable.
Commenting on the transaction, Tracey Fellows, Group CEO, REA said, “This transaction is a great outcome for both REA Group and iProperty, and further strengthens our relationship and commitment to each other. It will bring together two leading real estate portals in Hong Kong, enabling iProperty Group to strengthen its market position and reach a broader audience.”
In August, online investment firm, Catcha Group announced that REA Group has made an investment of US$100 million in its portfolio company iProperty Group for a 17.22 per cent stake.
iProperty Group is the owner and operator of a network of property websites, and was floated on the ASX in September 2007 at A$0.25 per share.
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