REA Group (ASX:REA) share price higher on Asian update

The REA Group Limited (ASX:REA) share price is on the move on Monday after announcing changes to its Asian operations…

| More on:
two businessmen shake hands amid a backdrop of tall buildings, indicating a share price movement or merger between ASX property companies

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The REA Group Limited (ASX: REA) share price is on the move on Monday morning.

At the time of writing, the property listings company's shares are up almost 1% to $165.71.

Why is the REA Group share price pushing higher?

Investors have been bidding the REA Group share price higher today following the release of an update on its Malaysia and Thailand operations.

According to the release, the company has entered into a binding agreement to combine its Malaysia and Thailand businesses with Asia's largest online property portal group, PropertyGuru.

Under the proposed transaction, REA Group will transfer ownership of its Malaysia and Thailand entities to PropertyGuru in exchange for an 18% equity interest in the Singapore-based company. REA Group will also take one seat on the PropertyGuru Board.

PropertyGuru currently operates marketplaces in Singapore, Vietnam, Malaysia, Thailand and Indonesia. Management notes that the combined businesses will have access to a deeper pool of expertise, technology and investment, which it believes will accelerate innovation and provide enhanced digital solutions to home seekers, property agents, and developers.

It also notes that the transaction will provide REA Group 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.

REA Group's CEO, Owen Wilson, commented: "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."

What now?

The agreement contains customary termination events and is conditional on REA Group's divestment of its 27% interest in 99 Group. It is the operator of 99.co, iProperty.com.sg, and rumah123.com. REA Group will retain ownership of its Hong Kong and Myfun businesses.

The transaction is expected to result in an overall gain on divestment of approximately $10 million.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Opinions

2 ASX shares I have been buying in 2024!

I’m a believer in the long-term outlook of these stocks.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »