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The property services group said it has received approval from the Foreign Investment Review Board for its proposed acquisition of Mortgage Choice.
REA Group has announced that it has confirmed with Mortgage Choice that the Foreign Investment Review Board (FIRB) has approved the acquisition of the major brokerage by way of a scheme of arrangement.
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In March, REA Group announced a proposal to acquire 100 per cent of Mortgage Choice for $244 million by way of a scheme of arrangement.
The group said that the transaction is subject to conditions being met, including Mortgage Choice shareholder and regulatory approvals.
It has now said in an ASX announcement that it has received written correspondence from the FIRB that the Commonwealth has no objections under the Foreign Acquisitions and Takeovers Act 1975 to the proposed acquisition of Mortgage Choice by REA Financial Services Holding (a wholly owned subsidiary of REA Group).
Mortgage Choice has confirmed that the correspondence satisfies the condition set out in the scheme implementation agreement between Mortgage Choice and REA Group.
The group said that the scheme still remains subject to a number of outstanding conditions, including approval of Mortgage Choice shareholders in the requisite majorities at the scheme meeting.
The Supreme Court of NSW recently made orders approving a meeting of Mortgage Choice shareholders to consider a vote on the proposed acquisition.
The meeting is scheduled to be held on 10 June.
If the required majorities of Mortgage Choice shareholders approve the scheme resolution, a second court date for approval of the scheme is set for 17 June.
The scheme would become effective on 18 June and would be binding on Mortgage Choice shareholders, while the scheme order will be lodged with the Australian Securities and Investments Commission and its lodgement will be announced on the ASX.
The date will also mark the last day of trading in Mortgage Choice shares on the ASX, with the shares due to be suspended from trading on the ASX from close of trading. The scheme’s implementation date is set for 1 July if approved by shareholders, when payment of the scheme consideration and transfer of scheme shares to REA BidCo will take place.
An independent report recently found that the proposed acquisition of the major brokerage is “fair and reasonable”.
[Related: Mortgage Choice adds non-major to panel]
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