REA GROUP LTD — Capital/Financing Update 2016

Dec 19, 2016

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ASX Announcement 20 December 2016

REA Group announces sale of its European businesses, atHome Group and REA Italia

REA Group Limited (ASX:REA) (“REA Group”) today announced that, following a competitive process, it has entered into an agreement to sell its European businesses, atHome Group S.à r.l. and REA Italia S.r.l., to Oakley Capital Private Equity (“Oakley Capital”) who are backing the existing management team. Oakley Capital is well placed for this investment with strong digital interests and a geographic focus in Italy, including Facile.it, the Milan-based price comparison website.

The transaction will incorporate atHome Group S.à r.l.’s businesses in Luxembourg, France, Germany and REA Italia S.r.l’s business in Italy. The transaction values REA Europe at €132.6 million (AUD 189.7 million) on a cash and debt free basis and will result in an estimated profit of €115.2 million (AUD 164.8 million) subject to final completion adjustments.

REA Group CEO Tracey Fellows said: “We were approached by multiple parties interested in our European businesses and took the opportunity to look at where we could make the greatest impact and optimise return for our shareholders.”

“The transaction announced today with Oakley Capital enables us to further sharpen our focus in our key growth areas in the Australian, Asian and North American markets.”

In the United States, REA Group and News Corp (NASDAQ: NWS, NWSA; ASX: NWS, NWSLV) own Move, Inc., operator of realtor.com (with 20% and 80% stakes respectively). REA Group also owns iProperty, operator of leading digital property platforms in South East Asia.

The transaction is subject to standard closing conditions and pre-closing adjustments and is expected to be completed in Q1 2017. REA Group was advised by Citigroup Global Markets Pty Limited as financial adviser, and CMS Cameron McKenna LLP as external legal adviser.

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For further information:

REA Group Limited Investors REA Group Limited Media Owen Wilson Natalie Cerny Chief Financial Officer Head of Corporate Affairs P: +61 3 8456 4288 M: +61 407 487 221 E: ir@rea-group.com E: natalie.cerny@rea-group.com

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About REA Group Limited: (www.rea-group.com): REA Group Limited ACN 068 349 066 (ASX:REA) (“REA Group”) is a multinational digital advertising business specialising in property. REA Group operates Australia’s leading residential and commercial property websites, realestate.com.au and realcommercial.com.au, European sites casa.it, atHome.lu and immoRegion.fr, Chinese property site myfun.com and a number of property portals in Asia via its ownership of iProperty Group. REA Group also has a significant shareholding in US based Move, Inc.

About Oakley Capital Private Equity : Oakley Capital Private Equity (“Oakley Capital”) comprises three unlisted mid-market private equity funds which have the aim of providing investors with significant long term capital appreciation. The investment strategy of the funds is to focus on buy-out opportunities in industries with the potential for growth, consolidation and performance improvement.

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