REA Group to buy out iProperty for A$580 million

SYDNEY: News Corp’s Australian real estate website company REA Group Ltd said it plans to buy out smaller rival iProperty Group Ltd for A$580 million (RM1.78 billion), seizing on the target company’s footprint in Southeast Asia.

The deal would give News Corp exposure to property markets of Thailand, Indonesia, Malaysia and Hong Kong.

In a statement yesterday, REA Group said it plans to pay A$4 per share for the 77.3% of iProperty that it does not already own, giving the target company a market capitalisation of A$751 million. iProperty would recommend the deal in the absence of a better offer.

iProperty shares jumped as much as 11% in a weaker overall market to A$3.90, their highest since March 2014. REA shares rose 1.3%. – AFP