You might be wondering why shares of online real estate business iProperty Group Ltd (ASX: IPP) skyrocketed in the final minutes before the market closed on Tuesday afternoon.
Indeed, the shares traded flat for the vast majority of the day at around $2.60 but experienced a sudden surge at around 3:54pm, Sydney time. The stock closed the session at $2.82, up 9.3% for the day.
The sudden jump came after iProperty Group issued a 'Change in substantial holding notice', alerting the market that major shareholder REA Group Limited (ASX: REA) had increased its stake from 19.9% to 21.33%. The company acquired 2,882,903 shares, giving it a total of 40,036,843
iProperty Group has had tremendous success in the Asian property market so far and has established market-leading positions in Malaysia, Hong Kong, Thailand and Indonesia, while it is also becoming a dominant force in Singapore.
Today's acquisition by REA Group suggests iProperty could well become a takeover target in the near future, especially if it continues to post impressive results.
