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- REA Group (REA) has received the go-ahead from the Foreign Investment Review Board (FIRB) for its proposed acquisition of Mortgage Choice (MOC)
- According to the deal, REA intends to purchase 100 per cent of Mortgage Choice’s outstanding shares at $1.95 each, valuing the deal at roughly $244 million
- Mortgage Choice generated revenue of $22.2 million in the last six months of 2020 and recorded after-tax profit of $4.1 million
- The deal remains subject to several other conditions, including approval from the shareholders of Mortgage Choice at a meeting scheduled for June 10
- Shares in REA Group were up 2.85 per cent to $164.40 each at the close of trading today
REA Group (REA) has received the go-ahead from the Foreign Investment Review Board (FIRB) for its proposed acquisition of Mortgage Choice (MOC).
According to an announcement published on March 29, REA said it intended to purchase 100 per cent of Mortgage Choice’s outstanding shares — through its wholly owned subsidiary REA Financial Services — at $1.95 each, valuing the deal at roughly $244 million.
With more than 380 franchises across Australia, Mortgage Choice generated revenue of $22.2 million in the last six months of 2020 and recorded after-tax profit of $4.1 million.
REA chief executive Owen Wilson said in March: “The acquisition of Mortgage Choice represents an exciting opportunity for REA to create a leading broking business.
“It builds on our success to date, accelerating our financial services strategy while leveraging our existing strengths and capabilities.”
Vicki Allen, chairman of Mortgage Choice, agreed and called the deal “a fantastic milestone”.
“Joining the REA network creates a significant opportunity to leverage its deep digital capabilities and expertise, combined with access to a large and engaged consumer audience,” she said.
While the FIRB approval shows that the Commonwealth has no objections to the buyout under the Foreign Acquisitions and Takeovers Act 1975, the deal remains subject to several other conditions, including approval from the shareholders of Mortgage Choice at a meeting scheduled for June 10.
Shares in REA Group were up 2.85 per cent to $164.40 each at the close of trading today.
REA Group is majority owned by U.S.-listed News Corp.
