Australian digital advertising group, REA Group, is looking to acquire 100% of the share capital of Southeast Asian property group iProperty Group Limited. REA Group, is a subsidiary of News Corp which owns property sites in Australia, China, US, and Europe.
The acquisition is valued for a massive sum of AU$751 million. According to several media reports, this is one of the largest acquisition of an ASEAN start-up.
iProperty has websites operations across Asia in markets such as Singapore, Malaysia, Hong Kong, Indonesia, Thailand, The Philippines and Macau. Catcha Group currently holds majority shares of iProperty Group.
Last year REA Group invested a minority stake of 17.22% in iProperty.It is currently offering the company’s share holders either AU$4 a share or a mix of AU$1.20 a share in cash along with a 0.7 shares in a new private company owned by REA called BidCo.
According to Patrick Grove, iProperty chairman, in 2007 the company debuted in the Australian Stock Exchange for AU$0.25 and this would mark a 16-fold return for all investors.
In a statement to The Business Times, Grove said the move indicates a equalised playing field for property buyers in Australia and Asia and enables both companies opportunities to launch faster marketing campaigns. He added that this indicates that Southeast Asia is in a great position for global players to build “disruptive Internet companies.”
iProperty declined to comment on Marketing’s queries.