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- REA Group’s (REA) acquisition of Mortgage Choice (MOC) has received court approval
- The scheme has now been lodged with ASIC, meaning it is now legally effective
- It is expected that trading in Mortgage Choice’s shares will be suspended from the close of trading today
- REA Group is up 4.16 per cent, trading at $172.16 per share at 11:29 am AEST
- Mortgage Choice shares are unchanged, trading at $1.95 per share at 11:29 am AEST
REA Group’s (REA) acquisition of Mortgage Choice (MOC) has steamed ahead, with the Supreme Court of New South Wales approving scheme, which has now been lodged with ASIC.
Yesterday the court approved the scheme between the two companies, which once implemented, will result in Mortage Choice becoming wholly owned by REA Financial Services Holding, a subsidiary of REA Group.
The scheme has been lodged with ASIC, which means it is now legally effective.
It is expected that trading in Mortgage Choice’s shares will be suspended from the close of trading today, June 18, 2021.
REA entered into a scheme of implementation on March 29, to acquire Mortgage Choice shares for $1.95 each, valuing the transaction at roughly $244 million.
It was recently given the go-ahead from the Foreign Investment Review Board on May 26, with MOC shareholders voting in favour of the acquisition on June 10.
Mortgage Choice stockholders on the register at 7 pm (AEST) on June 22, 2021, will receive a total cash consideration of $1.95 per Mortgage Choice share.
Implementation of the scheme is expected to be completed on July 1.
REA has been busy over the last few weeks, selling its Malaysia and Thailand businesses to Property Guru for an 18 per cent stake in the company.
It also acquired a 34 per cent stake in mortgage applications end e-lodgements solutions provider Simpology for $15 million.
This transaction, in conjunction with the purchase of Mortgage Choice, is planned accelerates the group’s financial services strategy
REA Group is up 4.16 per cent, trading at $172.16 per share at 11:29 am AEST.
Mortgage Choice shares are unchanged, trading at $1.95 per share at 11:29 am AEST.
