Premium paid as REA expands in Asia with 17% of iProperty website
The REA Group has paid $106 million for 17.2% of iProperty Group, the digital property advertising website in Malaysia, Singapore and South East Asia.
REA bought the stake in iProperty from the French real estate business SeLoger.com.
The $3.40 per share price is a substantial premium to the last closing price of $3.12, but appeared to be well accepted by the stockmarket.
Its 52 week trading range has been between $1 and $4.04.
The ASX listed shares of IPP jumped 16% this morning on the announcement. It closed the day up 18% at $3.69.
“This acquisition provides us with a strategic stake in one of the fastest growing real estate markets in the world and complements our existing business in Hong Kong, and the recent launch of MyFun.com and our partnership with Soufun.com in China,” REA interim chief executive Peter Tonagh told the stock exchange.
REA’s international reach already included Luxembourg, Italy, Hong Kong, Germany, China and France.
iProperty has online property portals in Malaysia, Indonesia, Singapore, Macau and Hong Kong, as well as investments in India and the Philippines.
The iProperty Group has Georg Chmiel as its chief executive.