Posting to buy Australia’s dominance in a $ 1.9 billion agreement, Eyes Rea Market domain

By Himanshi Akhand and Rishav Chatterjee

(Reuters) -USE Business company will cost to buy dominance for $ 3 billion ($ 1.92 billion), including debt, said the Australian property list platform on Friday, to try to create a well -capitalized opponent in News Corp’s Rea.

After weeks of due diligence to cost, which has a participation of 16.9% in the domain, companies have agreed to offer $ 4.43 from the North -American company.

Domain shares won up to 5.2% up to $ 4.47 and settled for their highest rise in a day in almost a month.

Nine Entertainment media, Domain’s biggest shareholder, has expressed support for the agreement and will receive $ 1.4 billion for its 60.1%participation. Nine shares jumped up to 8.1% up to $ 1.61.

Costar acquired a 16.9% participation on February 21, ahead of an initial acquisition offer of a $ 4.20 piece, which was subsequently collected. The acquisition would vote for shareholders in mid -August.

The Manager of the Spacium Capital Portfolio, Jesse Moors, said he would see the Australian Foreign Investment Review Board considered the risk of sovereignty with the Australian public residential housing data owned by a North -American real estate company.

Nou, who has popular newspapers such as The Age and Australian Financial Review, has failed to coincide with the dominion with the success that the opponent controlled by News Corp has enjoyed.

The REA market value reached $ 33.16 billion, after jumping more than 160% since 2020.

The domain is currently valued at $ 2.69 billion.

Actions in Rea fell to 4.2% and were established for their largest loss of one day since the beginning of April.

“We do not expect a material impact on the Rea position for the next 1-3 years, especially taking into account the execution of the Rea product and we hope that marketing schedules will initially expand if costing is successful in the growing audience of the domain,” said Citi’s analysts.

Cost, originally an information and analytical provider for commercial real estate, in recent years has focused on creating a dominant presence in online property markets.

($ 1 = $ 1,5659)

(Himanshi Akhand and Rishav Chatterjee in Bengaluru; Rashmi Aik edition)