REA Group Ltd Annual Report 2021

Notes to the Consolidated Financial Statements for the year ended 30 June 2021 REA Group Ltd | Annual Report 2021 27. Events after the Statement of Financial Position date Completion of sale of Malaysia and Thailand businesses and investment in Property Guru Pte Ltd On 3 August 2021, the Group completed the sale of its Malaysia and Thailand entities (which operate iProperty .com.my and Brickz.my in Malaysia and thinkofliving.com and Prakard.com in Thailand) to PropertyGuru Pte Ltd (“PropertyGuru”). In exchange, the Group received an 18% equity interest (16.6% diluted) of the combined PropertyGuru group and the right to appoint one Director to the PropertyGuru board. The PropertyGuru transaction completed after the Group entered into a contract to sell the 27% interest in 99 Group Pte. Ltd. (“99 Group”) and associated convertible note, which had a combined book value of $21 million at 30 June 2021. As part of the contractual arrangement, the Group has divested the shareholder rights associated with the investment, with a settlement period of up to 36 months. In the unlikely event that the sale proceeds are not settled within that period, a market sale process would be initiated to recover the funds. In addition, committed funding of up to US$8.7 million for 99 Group will continue to be supported by a letter of credit from the Group. The transactions are expected to result in an overall net gain of approximately A$12 million. On 24 July 2021, PropertyGuru announced a business combination with the special purpose acquisition company Bridgetown 2 Holdings Limited, through which the PropertyGuru business plans to list on the New York Stock Exchange (NYSE). REA has committed to subscribe for US$52 million of equity in the listed entity subject to completion of the business combination, which is anticipated to occur in the fourth quarter of the 2021 calendar year, or the first quarter of 2022. After taking into account the capital raising conducted concurrently with the business combination, REA expects to hold a 15.8% (14.9% diluted) equity interest in the listed entity and will nominate REA CEO Owen Wilson to the board. Increase in Elara shareholding In July the Group subscribed for new Class I Preference Shares increasing its shareholding from 60.65% to 65.49%. Total funding provided was $20.8 million, with News Corp continuing to hold a non controlling interest in Elara of 34.3%. Except for those items disclosed above, from the end of the reporting period to the date of this report, no matters or circumstances have arisen which have significantly affected the operations of the Group, the results of the operations or the state of affairs of the Group. 124 Financial Statements