The two groups will work closely on a "smooth transition" for brokers, says CEO
REA has announced the successful implementation of the scheme of arrangement of Mortgage Choice, marking the start of a new chapter for both groups.
As part of the implementation, Mortgage Choice shareholders on the register at 7.00pm Sydney time on June 22 were paid $1.95 per Mortgage Choice share, following the suspension of trading on the ASX at close of trading on June 18. An application will be made to terminate Mortgage Choice's official quotation on the ASX and removal from the official list of the ASX, effective on 1 July 2021. According to REA, the Scheme consideration of $1.95 per share represents an enterprise value of approximately $244 million.
REA Group Chief Executive Officer, Owen Wilson said the completion of the acquisition represented an “exciting milestone” for the two businesses.
“We’re extremely pleased to welcome the Mortgage Choice team into REA,” he said. “Together, we look forward to accelerating REA’s financial services strategy to become a leading player in the home loan market.”
Mortgage Choice CEO Susan Mitchell issued the following statement to MPA on the deal.
“Over the coming months REA and Mortgage Choice management teams will work to ensure a smooth transition and integration, while delivering the same levels of industry leading service and support to our franchisee network, brokers, clients and business partners. In the meantime, it will be business as usual.
"We look forward to keeping you updated on key milestones as we progress our integration activities."