Shares of REA Group Ltd. (REA.AX) rose over 3 percent in Australian trading following the company’s announcement on Thursday that it has agreed to acquire a 19.9 percent stake in Athena Home Loans. Athena Home Loans is a digital non-bank lender and one of the fastest-growing fintech companies, with the acquisition valued at up to A$62 million.The proposed investment is subject to regulatory approval and other conditions, with completion anticipated within one to two months.REA Group, currently pursuing the acquisition of UK’s Rightmove plc (RMV.L), stated that the Athena investment will be financed from its existing cash reserves. Post-acquisition, REA will secure two seats on Athena’s Board.REA and Athena first initiated a strategic partnership in 2022, integrating Athena’s home loan products with REA’s distribution network through its Mortgage Choice brand.In June 2023, REA introduced the Mortgage Choice Freedom suite of white label products developed in collaboration with Athena, which resulted in A$1.2 billion in settlements for fiscal 2024, surpassing initial expectations.REA Group CEO Owen Wilson emphasized the company’s commitment to investing in new technology to expedite its strategy and enhance value. Wilson stated, “Expanding our national broker network and evolving our digital mortgage offerings for the 12 million Australians visiting realestate.com.au are crucial components of our financial services strategy. This equity investment builds on the success of our Mortgage Choice Freedom home loan products and strengthens our alliance to drive strategic goals, while also benefiting from Athena’s expanding loan portfolio.”In Australia, REA shares were trading at A$198.81, up 3.34 percent.The material has been provided by InstaForex Company – www.instaforex.com
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