14th May 2012. iProperty Group (ASX: IPP) the owner of Asia’s No. 1 network of property portal sites under the iProperty brand (www.iproperty.com), today announced that it had agreed to the sale of its Indonesia cars portal ‘mobil123.com’ to iCar Asia Pte Ltd, a wholly owned subsidiary of iCar Asia Ltd and part of the Catcha Group, for a maximum consideration of A$3m.
The deputy chair of iProperty, Patrick Grove is the founder, Group CEO and Chairman of the Catcha Group.
The sale price for the assets and business of mobil123.com is a maximum amount of A$3m, of which either A$2.1m in cash would be paid by instalments over five years following completion of the sale, or in the event of a liquidity event with respect to the purchaser of the assets and business occurring within five years of completion, A$1m in cash plus an equity interest in the purchaser of the equivalent of A$2m.
mobil123.com was acquired by iProperty Group as part of the purchase of PT Web Marketing, owner and operator of rumah123.com, Indonesia’s leading property portal. PT Web Marketing was acquired in May 2011 for A$1m in cash and 7 million shares.
iProperty Group CEO Shaun Di Gregorio commented: “Our core business is online property portals and we acquired mobil123.com as part of the acquisition of rumah123.com. We are focused on continuing to develop rumah123.com as the clear market leader in Indonesia and the sale of mobil123.com to iCar Asia Pte Ltd further enhances our focus on that goal”.
iProperty Group, the Catcha Group and iCar Asia Pte Ltd will work cooperatively at an operational level to ensure the smooth transition of the business and its continued success. It is envisaged that both parties will engage in cooperative promotion and marketing of the brands and sharing of key resources including tenancy.