News Corp Says No to Investing in REA Group
July 2, 2009 by Emma Sorensen
News Corp has apparently decided not to invest further in the REA Group.
As previously reported, the Ray White Group sold its complete shareholding in the REA Group late on Tuesday.
Now the Finance News Network has reported that News Corp allegedly decided not to invest further in the REA Group Ltd after it was offered some of these 13.5 million shares which were sold by CCZ Stratton Equities on behalf of Sam White, deputy chairman of Ray White Group, on Tuesday.
The Finance News Network says that according to the Australian Financial Review, News Corp’s local arm News Ltd wanted to acquire some of the shares on offer to increase the company’s existing 60.7 percent stake in the REA Group. However, News Corp execs are understood to have rejected the idea.
It is a surprising move, given News Corp’s previous interest in the REA Group. News Corp unsuccessfully attempted a takeover bid in 2005 and has since used the creep provision to lift its stake in the company. Last October News purchased 3 million shares in the REA Group from Ray White for $4.50 a share.
The 13.5 million shares held by Ray White sold at $5.75 per share, yielding $77.6 million.
The sale represented a change of ownership of 10.8% of the REA Group shareholding base. It is believed that the shares have been acquired by a number of institutional investors.
Read or watch the report from the Financial News Network here.
- News Corp Increases Stake in REA Group
News Limited, the Australian subsidiary of News Corp, has increased its stake in realestate.com.au Ltd to 60.7%. ...
- Ray White Sells REA Group Shareholding
In a surprise move late last night, the Ray White Group sold its complete shareholding in the REA Group (realestate.com.au). The long time second largest shareholder sold 13.5 million shares at $5.75 per share, yielding $77.6 million. This represents a change of ownership of 10.8% of the REA Group shareholding base. It is believed that the shares have been acquired by a number institutional investors and, surprisingly, not by News Corp....
- Another REA Group Director Sells Shares
Rumours are circulating about a large share trade of REA Group stock - the second in three months....
- REA Group Projects 50% Revenue Growth
While many in the property portal world are worried about a possible downturn in advertising revenue, Greg Ellis, CEO of REA Group, remains optimistic projecting a 50% revenue growth....
- REA Group Revenue Up, Profits Down
REA Group Limited has announced its results for the Australian financial year ending 30 June 2009, showing that it delivered 26% revenue growth and 34% EBITDA growth, and announcing a dividend payment of 10 cents per share. But the news was not all good....
Loading ...
Perhaps today we all know why a) Ray White sold out of REA, and b) Why News Ltd did not want to increase their stake/ RISK in REA.
Someone, somewhere knew about Googles Property Map Ap launching… or it is just one of those great coincidences?
The REA share price took a small hit today, but that may have more to do with commodity prices than the google foray.