REA Expanding Broking Service With Mortgage Choice Takeover

   By Stuart Condie

SYDNEY--REA Group Ltd. proposes buying ASX-listed home loan broker Mortgage Choice Ltd. in a move the property advertiser said will leverage its large audience to build a leading broking business.

REA on Monday said its all-cash proposal was worth 1.95 Australian dollars (US$1.49) per share, representing a 66% premium to the stock's last closing price. It said the offer represented an enterprise value of approximately A$244 million.

REA said it would fund the transaction through an increase of its existing syndicated debt facilities. It expects to partially refinance its existing A$170 million facility, which is due to expire in December.

Mortgage Choice's independent directors have unanimously recommended the offer.

REA is 61% owned by News Corp., which also owns Dow Jones & Co., the publisher of this newswire and The Wall Street Journal.

Write to Stuart Condie at stuart.condie@wsj.com

(END) Dow Jones Newswires

March 28, 2021 18:54 ET (22:54 GMT)

Mortgage Choice (ASX:MOC)
Historical Stock Chart
From Nov 2024 to Dec 2024