Court signs off on $578m REA acquisition

Court signs off on $578m REA acquisition

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REA Group’s acquisition of portal business iProperty Group has today been approved by the Federal Court.

A copy of the court’s orders has been lodged with ASIC and the acquisition has become legally effective.

REA Group expects to take control of iProperty on 16 February, although the ASX will suspend trading of iProperty shares at the close of trading today.

REA Group tabled its takeover proposal in November, with iProperty shareholders approving the deal last week.

The deal valued iProperty at $751 million, although REA Group will only pay $578 million since it already owns 22.67 per cent of the company.

While REA Group has a strong presence in Australia, iProperty is based in Malaysia and also does business in Singapore, Hong Kong, Indonesia, India, Thailand, the Philippines and Macau.

REA Group said in November that the acquisition is consistent with its strategy of investing in high-growth regions.

“The real estate market [in Asia] is expected to continue to grow driven by expanding populations and increasing GDP per capita, with the acceleration from offline to online advertising presenting an enormous opportunity for iProperty,” it said.

[Related: REA Group posts $210.2 annual profit]

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