News Limited purchased 3m shares in realestate.com.au Ltd (known as the REA Group) at $4.50 per share from the second largest shareholder, the White family (owners of Ray White Real Estate – Australia’s largest real estate group). The White family’s stake has now reduced to 10.8%.
In a statement released to the market today, Sam White of the Ray White Group said “In effect we have sold about 20% of our holdings in the REA Group to raise capital to fund emerging opportunities that exist in a number of market segments in which we operate. Even after the sale we remain a significant shareholder in the REA Group.”
No comment was made by News Limited as to its intentions. In August 2005 News Limited made a failed take over bid for the REA Group.