REA Rea Group Ltd

SYDNEY--REA Group Ltd. (REA.AU) agreed to sell its Hong Kong business to iProperty Group Ltd. (IPP.AU) in exchange for a greater shareholding in the fellow online real-estate-listings group, the companies said Tuesday.

Subject to iProperty shareholder approval, REA will sell its Squarefoot business for 5 million iProperty shares at an agreed price of 3.00 Australian dollars (US$2.64) per share, or A$15 million. The deal would push REA's interest in iProperty up to 19.4% from an initial 17.2% holding, acquired for A$106.3 million in July.

REA has also been invited to appoint a representative to the iProperty board. REA is majority owned by News Corp, which owns and publishes The Wall Street Journal and Dow Jones Newswires.

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