SYDNEY -- News Corp's Australian real estate website company REA Group Ltd will get access to the Thai property market with the acquisition of iProperty Group Ltd announced Monday.
The Australian firm is buying its smaller rival for A$580 million (US$414 million), seizing on the target company's footprint in Southeast Asia.
The deal would give News Corp exposure to property markets not only in Thailand, but Indonesia, Malaysia and Hong Kong just as Australian real estate advertisers like REA brace for a downturn at home following several years of double-digit growth.
In a statement on Monday, REA Group said it plans to pay A$4 per share for the 77.3% of iProperty that it does not already own, giving the target company a market capitalisation of A$751 million. iProperty would recommend the deal in the absence of a better offer.
iProperty shares jumped as much as 11% in a weaker overall market to A$3.90, their highest since March 2014. REA shares rose 1.3%.