News Corp's online real estate business REA Group is looking to expand its presence in Asia with the launch of a $750 million takeover bid for southeast Asia-focused rival iProperty.
REA, the operator of realestate.com.au and Australia's biggest online property group, is offering cash consideration of $4.00 for each iProperty share.
It is also giving the target's shareholders an option of receiving a cash and scrip offer.
Shares in iProperty lifted almost 10 per cent on the news on Monday, closing 33 cents higher at $3.84.
REA Group said Southeast Asia had strong population and gross domestic product growth and the real estate market was expected to continue to grow as buyers and sellers move to online advertising.
"The acquisition of iProperty is the logical extension of REA's market leading business in Australia and marks the next step in its strategy to pursue strategically sound expansion into attractive markets," REA Group chief executive Tracey Fellows said in a statement.
She said iProperty would provide the group with exposure to new geographies as it continued to expand into Asia and beyond.
iProperty emerged as a start-up company and now owns leading property websites in Hong Kong, Malaysia, Thailand and Indonesia.
REA Group said the offer had been recommended by iProperty directors, and it planned to fund the acquisition primarily from debt facilities totalling $480 million and cash reserves.
REA, which also has online assets in the US and Europe, expects the acquisition to be completed in the first quarter of 2016.
The group's key Asian operation lists Australian properties for Chinese buyers, while it also holds a 21.3 per cent stake in the owner of a network of Asian real estate sites.
Shares in REA Group closed 84 cents higher at $48.87.
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