REA Group Limited (ASX:REA) entered into a Scheme Implementation Agreement to acquire Mortgage Choice Limited (ASX:MOC) for approximately AUD 250 million on March 28, 2021. Under the terms, REA Group will pay AUD 1.95 per share. The transaction is expected to be funded by an increase in REA's syndicated debt facilities. Mortgage Choice may be required to pay a reimbursement fee to REA of an amount equal to AUD 2.4 million, or REA may be required to pay a reimbursement fee of an amount equal to AUD 2.4 million to Mortgage Choice. The Scheme is subject to customary conditions, including Mortgage Choice shareholder approval, court approval, FIRB approval, no material adverse change and no prescribed occurrences, and the independent expert concluding that the Scheme is in the best interests of Mortgage Choice shareholders. The Scheme is not subject to due diligence or financing conditions. Foreign Investment Review Board approved the transaction on May 26, 2021. The Mortgage Choice Board has unanimously approved and recommended shareholders to vote in favor of the transaction. As of May 6, 2021, Supreme Court of New South Wales approved the deal. Scheme Meeting is scheduled to be held on June 10, 2021. The transaction is expected to complete on June 29, 2021. Following the completion of necessary regulatory and Mortgage Choice shareholder approvals, the Scheme is anticipated to be implemented by July 1, 2021. As of May 10, 2021, transaction is expected to close in fourth quarter of fiscal year 2021. On June 10, 2021, shareholders of Mortgage Choice approved the acquisition and the transaction remains subject to the approval of the Court on June 17, 2021. The Supreme Court of New South Wales made orders approving the Scheme on June 17, 2021. The effective date of the transaction is on June 18, 2021. A copy of the orders made by the Supreme Court of New South Wales approving the scheme of arrangement was lodged with the Australian Securities and Investments Commission and accordingly the scheme became legally effective on June 18, 2021. The proposed transaction is expected to be immediately EPS accretive for the REA Group with potential for future cost and revenue synergies. REA Group has appointed Goldman Sachs Australia Pty Ltd as its financial advisor and King & Wood Mallesons, Australia Branch as its legal advisor to assist with the transaction. Grant Samuel acted as financial advisor and Ashurst acted as legal adviser for Mortgage Choice.


REA Group Limited (ASX:REA) completed the acquisition of Mortgage Choice Limited (ASX:MOC) on July 1, 2021. Mortgage Choice shareholders who were on the Mortgage Choice register on June 22, 2021 have been transferred cash consideration of AUD 1.95 per Mortgage Choice share. Mortgage Choice Limited will be removed from the Official List of ASX Limited at the close of trading on July 1, 2021.