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 woman wearing dark clothing and sporting a few tattoos and piercings holds a phone and a takeaway coffee cup as she strolls under the Sydney Harbour Bridge which looms in the background.
Broker Notes

The smartest Australian stocks to buy with $400 right now

Let's see why these shares are highly rated by brokers.

Read more »

Woman and man calculating a dividend yield.
Share Market News

What ASX 200 investors just learned about the next RBA interest rate move

Will ASX 200 investors get a much-awaited interest rate cut in August?

Read more »

person with large headphones looking puzzled holding their hand to their chin.
Broker Notes

Does Macquarie prefer Harvey Norman or JB Hi-Fi shares?

Both companies have market-beating long-term track records.

Read more »

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Share Gainers

Why Capricorn Metals, Insignia, Perseus Mining, and Qoria shares are storming higher

These shares are having a strong session on Tuesday. But why?

Read more »

A young man sits at his desk with a laptop and documents with a gas heater visible behind him as though he is considering the information in front of him. about the BHP share price
Broker Notes

Leading broker has just downgraded BHP shares. Is it time to sell?

Macquarie sees little upside. But why?

Read more »

A blockchain investor sits at his desk with a laptop computer open and a phone checking information from a booklet in a home office setting.
Broker Notes

Are non-bank lenders a lucrative alternative to the big 4 banks?

The big 4 banks are widely perceived as being fully valued or overvalued.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why CBA, Inghams, Praemium, and Strike Energy shares are tumbling today

These shares are having a tough time on Tuesday. But why?

Read more »

A man in a business suit and tie places three wooden blocks with the numbers 1, 2, and 3 on them on top of each other.
Broker Notes

3 reasons to buy this booming ASX All Ords tech stock today

A leading broker forecasts more gains to come from this surging ASX All Ords tech stock.

Read more »