REA Group (ASX:REA) advises that PropertyGuru Group has entered into a definitive agreement to transfer ownership of PropertyGuru to affiliates of BPEA Private Equity Fund VIII for US$6.70 per share which values the company at approximately US$1.1 billion.
On completion of that transaction REA will divest its 17.2% stake in PropertyGuru.
This transaction follows a competitive process run by a Special Committee of the PropertyGuru Board after the major shareholders, TPG and KKR, who collectively hold over 56% of PropertyGuru ordinary shares, informed the company of their intention to realise their investment.
“EQT’s offer represents a compelling price. We wish the PropertyGuru management team well as the business takes its next steps under new ownership. Our global growth strategy remains focused on our Indian business which has significant momentum and represents an outstanding opportunity,” REA Group CEO, Owen Wilson, said.
REA expects to receive approximately A$286m from the sale. The investment in PropertyGuru currently has a net carrying value of A$136m and therefore a non-core gain on completion of approximately A$150m will be recorded in FY25.
The acquisition of PropertyGuru by EQT is subject to customary closing conditions including approval by PropertyGuru’s shareholders and receipt of regulatory approvals. PropertyGuru has stated that the transaction is expected to close in Q2 or Q3 in FY25.
