IPGA Ltd (ASX: IPP), the owner of Asia’s No. 1 network of property portal sites under the iProperty brand (www.iproperty.com) on Monday announced that it has entered into an agreement with SeLoger.com to raise AUD$8.9 million by way of a strategic investment from SeLoger.com, France’s number one ranked property portal.
SeLoger.com is part of the Axel Springer Group, one of Europe’s largest Media Groups.
The investment by SeLoger.com is recognition and validation of IPGA’s leadership position in Asia where it operates market leading property portals in Malaysia, Singapore and Hong Kong, and has recently entered into an agreement to acquire the No. 1 and No. 3 property portals in Indonesia.
Chairman of IPGA Limited Simon Baker said, “We are delighted to have SeLoger.com invest in the business. They are a global leader in the industry operating one of the largest and most successful property portals.”
He said the investment will provide IPGA with funds and experience to further consolidate its leading positions in Malaysia, Singapore, Hong Kong, and Indonesia, and to look for new opportunities to expand within the region.
“We are pleased to announce that Roland Tripard, the CEO of SeLoger.com, will join the Board and that the companies will actively exchange best practice information, ideas and operating approaches.
“The combination of SeLoger’s significant experience in residential and commercial portals, software, print, and events, combined with IPGA’s rapid growth and well established footprint, will create a formidable partnership in the Asian region,” Baker added.
Roland Tripard, CEO of SeLoger said, “We have identified the Asian market as one with significant long term future growth potential and believe that the IPGA business is best positioned to capture value from this market. We are looking forward to working with IPGA’s Board and management to bring our extensive knowledge and experience to the Asian market.”
Under the agreement, SeLoger.com will acquire 15,347,500 IPGA shares for AUD$8,901,550 giving it a 9.4% stake in IPGA Limited.
These shares will be voluntarily locked up for 9 months from completion.
While SeLoger and its affiliates hold 5% or more of IPGA Limited’s issued share capital, IPGA has agreed to provide SeLoger with the opportunity to participate in any non pro rata cash offering in order to maintain its interest in IPGA at that time and SeLoger.com has the right to nominate a representative to be on the Board of IPGA.