Rea Group bringing an evolution to property-related services
Rea Group Ltd (ASX: REA) has lately announced that realestate.com.au has joined hands with National Australia Bank (ASX: NAB) through a five-year strategic partnership with an aim to establish an integrated digital home loan experience on realestate.com.au. The two groups are expected to work closely to develop an innovative end-to-end digital property buying experience that will be an Australian first of a kind.
 

Through this move, consumers will be able to access a suite of NAB home loans, a realestate.com.au branded white label product, and a panel of other lenders. NAB is expected to provide funds to realestate.com.au to enable development of the above platform and commissions for home loans settled. REA has indeed set up a dedicated team for the roll-out of the new digital experience in 2017. This will help leverage an annual $400 billion mortgage market opportunity.

APN Outdoor Group’s move to form an advertising giant
APN Outdoor Group Ltd (ASX: APO) is planning to buy rival oOh!Media Ltd (ASX: OML) in all shares deal valued at about $735 million. The merger will create a leading diversified conglomerate out of home and online media group benefitting from the digital capabilities of both businesses across expanded portfolio of assets. This will further enhance the geographical presence with attractive metro and regional locations across Australia and New Zealand. The market capitalization of combined entity is expected to be about $1.6 billion.

 
APO’s Management expects the merger would benefit APN in pre-tax cost synergies of at least $20 million per annum. OML shareholders would get 0.83 of APN share for every OML share held. As of now, merger group ownership is split between APN Outdoor and oOh!Media shareholders at 55% and 45%, respectively. Subject to oOh!Media shareholder approval and other conditions being met, the scheme is expected to be implemented in April 2017. The merger is expected to add major value accretion for both shareholder groups and would result in FY16 pro forma EPS accretion of 14.7% and 14.2% to APN Outdoors and oOh!Media shareholders, respectively.

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