REA Group (ASX:REA) agreed to divest its India-based Housing.com business to Aurum PropTech in an all-share transaction valued at around AU$68 million, according to an Australian bourse filing on Thursday after market hours.
REA India's stake in Aurum will increase to 24.9% from 5.5% following the transaction, with the investment to be accounted for as a financial asset, per the filing.
The divestment is expected to be completed by the end of the first quarter of fiscal 2027, subject to shareholder approval and customary closing conditions, the filing said.
The company expects to record an overall loss on the sale of around AU$110 million due to goodwill impairment and transaction costs.
The India business is forecast to generate about AU$62 million in revenue in fiscal 2026 while reducing earnings before interest, taxes, depreciation, and amortization by around AU$36 million, and it will be reported as a discontinued operation, the filing added.