By Stuart Condie

SYDNEY--REA Group Ltd. said it is increasing its stake in Indian real estate advertiser Elara in a cash-and-scrip deal worth up to $70 million.

The Australia-listed property group on Thursday said it would increase its stake in Elara to between 47.2% and 61.1%, from its current 13.5% holding. It said it will pay $34.5 million in cash and the balance in newly issued REA shares.

The transaction is subject to confirmatory due diligence and renegotiation of key management employment contracts, REA said in a filing to the Australian Securities Exchange. It is anticipated to complete in 2Q of fiscal 2021.

REA will have five of nine board seats, it said.

REA said Elara operates India's fastest growing digital real estate business in terms of audience, under the Housing.com, PropTiger.com and Makaan.com brands. It said it increased its market share during the coronavirus pandemic and grew FY 2020 revenue by 9% to 27 million Australian dollars (US$19.2 million).

"With over 700 million internet users and roughly half a billion yet to come online, our increased investment in Elara will allow REA to be at the forefront of the considerable long-term opportunities within India," REA Group Chief Executive Owen Wilson said.

REA Group is 62% owned by News Corp., which also owns Dow Jones Newswires.

Write to Stuart Condie at stuart.condie@wsj.com

(END) Dow Jones Newswires

October 28, 2020 17:48 ET (21:48 GMT)

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