REA: News Ltd to acquire 44.2% stake in realestate.com.au
Thu 30 Nov 2000
Published: Thu 30 Nov 2000 09:34:23
Document No: 224213
Document part: A
Market Flag: Y
Classification: Issued Capital - Other , Asset Disposal
REALESTATE.COM.AU LIMITED 2000-11-30 ASX-SIGNAL-G HOMEX - Sydney +++++++++++++++++++++++++ News Limited have entered into an agreement with realestate.com.au to invest $10.75 million in cash and kind in return for a 44.2 per cent stake in the company. Under the terms of the agreement News would acquire 40 million shares with an option to acquire an additional 10 million shares over the next five years. In return News Limited will contribute: * $2.25 million in cash; * a range of advertising and marketing services; * the co-branding of 94 suburban newspapers' real estate sections Australia-wide; * its suburban newspapers' sales force to sell realestate.com.au services; * the transfer of 'Homes Online' to realestate.com.au; and * a range of sophisticated technology services. While News Limited would acquire the outstanding amount of Macquarie Bank's loan facility, extended to realestate.com.au on 29 August of this year, Macquarie will continue to retain a significant interest in the company. "This is a landmark deal for the Australian real estate industry. The most widely read newspapers are joining forces with the most visited online real estate service. Property hunters will now be able to read about a property on the way to work then go on a virtual tour of the property as soon as they are in front of a computer," realestate.com.au Chairman Professor John Niland said. "This is a great partnership. It enables us to leverage our technology in new markets and across News Limited's customer base. "The first port of call for most people buying or selling real estate is the newspaper. Only now, the newspaper will tell you how to get on to the net to take a virtual tour of those properties you are interested in. Anybody serious about buying or selling a property will want to do it this way. "realestate.com.au is the most convenient and complete way to research potential properties. The technology means that no matter where you are, you can access properties Australia wide, from the convenience of an internet connection," Professor Niland said. For further information please contact Vivienne Hardy at Intersection Services Marketing on (02) 9247 3782.