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- REA Group (REA) is set to trade its Malaysia and Thailand businesses with PropertyGuru for an 18 per cent stake in the company
- The transaction, which includes iProperty.com.my and Brickz.my in Malaysia and thinkofliving.com and Prakard.com in Thailand, is projected to result in a total gain on divestment of around $10 million
- The Malaysia and Thailand operations are estimated to contribute around $15 million to REA Group revenue in FY21 while reducing EBITDA by roughly $11 million
- The sale is contingent on REA’s selling of its 27 per cent stake in 99 Group, which operates 99.co, iProperty.com.sg and rumah123.com
- Shares in REA Group are trading up 0.21 per cent at $164.82 each at 11:19 am AEST
REA Group (REA) is set to trade its Malaysia and Thailand businesses with PropertyGuru for an 18 per cent stake in the company.
The transaction, which includes iProperty.com.my and Brickz.my in Malaysia and thinkofliving.com and Prakard.com in Thailand, is projected to result in a total gain on divestment of around $10 million.
The Malaysia and Thailand operations are estimated to contribute around $15 million to REA Group revenue in FY21 while reducing EBITDA by roughly $11 million.
“Building on the success of our operations in Malaysia and Thailand, this transaction presents a unique opportunity to create the most compelling digital property classifieds company in Southeast Asia and accelerate the next wave of proptech innovation across the region,” REA Group CEO Owen Wilson commented.
The sale agreement includes termination events, and the transaction’s completion, which is scheduled in July 2021, is contingent on REA’s selling its 27 per cent stake in 99 Group, which operates 99.co, iProperty.com.sg, and rumah123.com.
Singapore real estate start-up PropertyGuru is a digital proptech company operating marketplaces in Singapore, Vietnam, Malaysia, Thailand and Indonesia.
“The proposed transaction will provide REA with a strategic shareholding in a larger, more diversified company in a region that continues to experience rapid digital transformation across the real estate sector,” the company said in an announcement.
The deal does not require the approval of REA shareholders, with discussions over the divestment are already underway.
REA announced that it will keep ownership of its Hong Kong and Myfun operations.
Shares in REA Group are trading up 0.21 per cent at $164.82 each at 11:19 am AEST.
